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Kinnevik — Earnings Release 2011
Feb 15, 2012
2935_10-k_2012-02-15_bda1170d-4933-45d4-88fd-b0e88d9a6bc4.pdf
Earnings Release
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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 2011
Financial results for the fourth quarter
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Financial results for 2011
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Kinnevik's net asset value 2006-2011
70000 Pro forma adjusted for the acquisition of Emesco during Q3 2009. Figures in SEK m.
Market value - Listed Holdings
Figures in SEK m.
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Kinnevik was founded in 1936 and thus embodies more than seventy years of entrepreneurship under the same group of principal owners. Kinnevik's holdings of growth companies are focused around seven business sectors; Paper & Packaging, Telecom & Services, Media, Online, Microfinancing, Agriculture and 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.
Total return
The Kinnevik share's average annual total return
| Past 30 years 1) | 20% |
|---|---|
| Past 5 years | 5% |
| 2011 | $1\%$ |
1) Based on the assumption that shareholders have retained their allotment of shares in Tele2, MTG, Metro, Transcom and CDON.
Events during the fourth quarter
- On 4 November, the shares in Groupon Inc. was listed on NASDAQ in New York. Kinnevik has a direct holding in Groupon amounting to 8,377,156 shares. In addition, Rocket internet, in which Kinnevik owns 25% after all warrants have been exercised, holds 39,168,960 shares in Groupon. From this report, Kinnevik reports its directly owned shares in Groupon as a listed holding, while the indirectly owned shares held by Rocket Internet are continued to be reported under "Rocket Internet and portfolio companies".
- The change in fair value of the directly owned shares in Groupon amounted to SEK 743 m in the fourth quarter. The change in fair value of Rocket Internet and portfolio companies amounted to SEK 1,645 m for the fourth quarter, which mainly related to reported changes in fair value of Rocket's holdings in Groupon (SEK 868 m) and Zalando. See further under Online in this report.
- During the fourth quarter, Kinnevik invested a total of SEK 1,060 m within Online, of which SEK 1,045 m in Rocket Internet's portfolio companies. SEK 490 m of the consideration for Rocket Internet and its portfolio companies had yet to be paid at the end of the quarter and is recorded as debt in the balance sheet.
- At the end of December, Kinnevik signed a new three year syndicated credit facility agreement of SEK 5,300 m with extension options for another two years. The new credit facility is secured by listed shares, but without any financial covenants. It has from January 2012 replaced bilateral credit facilities with listed shares as security, totalling SEK 4,950 m.
- In December Kinnevik received an extra dividend from Millicom of SEK 767 m.
• In December Kinnevik subscribed for 33.7% in Transcom's issue of new shares, of which 22.3% with preferential rights and 11.4% in addition to this, in accordance with previously granted guarantee. In total, the payment amounted to SEK 170 m. Following the share issue, Kinnevik owns 33.0% of the capital and 39.7% of the votes in Transcom.
Events after the end of the reporting period
• On 6 February, Kinnevik announced a cash offer to acquire all outstanding shares, warrants and debentures in Metro International S.A. ("Metro"). The total offer value (excluding Kinnevik's existing holdings) for all shares and warrants amounts to approximately SEK 560 m and SEK 816 m including debentures. Metro's independent Board committee unanimously recommends Metro's shareholders and owners of warrants to accept the offer, supported by a fairness opinion that has been prepared in conjunction with the offer. Completion of the offer is not subject to a certain acceptance level. The acceptance period for the offer is expected to commence on 22 February and end on 20 March. Settlement is expected to commence on 29 March.
It is Kinnevik's intention to continue operations in accordance with the strategic plan that has been developed by the management of Metro and continue to invest in emerging markets. This strategy entail a balance between cost savings in the free newspaper business while at the same time investing in emerging markets and in the online business. From that perspective. Kinnevik believes that significant opportunities exist to further develop Metro outside of the stock exchange, where Kinnevik, as an active owner with significant capital resources for expansion and investments, can provide the long-term support for the management and the business that is needed in order to capture and fully capitalise on the opportunities that lie ahead.
• In early February, the Swedish Tax Authorities verbally informed Kinnevik that they consider to increase the Group's taxes by approximately SEK 700-800 m pertaining to Kinnevik's acquisition of Emesco AB in 2009. Following correspondence between the two parties and a number of meetings on the issue, the Tax Authorities have to date maintained their consideration to interpret the nature of the transaction in a manner that Kinnevik strongly refutes. Kinnevik has engaged a number of legal and tax experts, who all confirm Kinnevik's view of the matter.
Neither the content of a potential decision by the Tax Authorities, nor the timing of it, is known at the moment. If the Tax Authorities maintain their position and move forward with the issue against the company, Kinnevik will appeal the decision since the company is of the strong opinion that the Tax Authorities' interpretation of the law is incorrect.
Dividend and capital structure
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Kinnevik's part of dividends proposed to
| be paid from listed holdings | ||
|---|---|---|
| Millicom | USD 2.40 per share | 6021) |
| Tele2 | SEK 13 per share | 1 761 |
| MTG | SEK 9 per share | 122 |
| Total expected dividends to be recei- ved from listed holdings |
2 485 | |
| Of which ordinary dividends | 1 605 | |
| Proposed dividend to Kinnevik's shareholders |
SEK 5.50 per share | -1 525 |
1) Based on an exchange rate of 6.63 SEK/USD.
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Financial overview
Consolidated earnings for the fourth quarter
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Consolidated earnings full year 2011
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The Group's cash flow and investments
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| 1 Jan-31 Dec 2011 | Financial instrument | Amount (SEK m) |
||
|---|---|---|---|---|
| Subsidiaries | ||||
| G3 Good Governance Group | shares | 143 | ||
| Other subsidiaries | shares | 5 | ||
| 148 | ||||
| Other securities | ||||
| Paper & Packaging | ||||
| Bomhus Energi | shares | 112 | ||
| Telecom & Services | ||||
| Transcom | shares | 170 | ||
| Online | ||||
| Avito | shares | 62 | ||
| CDON | shares | 101 | ||
| Rocket Internet with portfolio companies |
shares/warrants | 2 673 | ||
| Other Online investments | 97 | |||
| Microfinancing | 19 | |||
| 3 234 | ||||
| 1 Jan-31 Dec 2010 | ||||
| Subsidiaries | ||||
| Latgran | shares | 71 | ||
| Other subsidiaries | shares | 14 | ||
| 85 | ||||
| Paper & Packaging | ||||
| Bomhus Energi | shares | 115 | ||
| Online | ||||
| Rocket Internet with portfolio companies |
shares/warrants | 747 | ||
| Avito | capital contribution | 153 | ||
| Other Online investments | 17 | |||
| Microfinancing | ||||
| Bayport | shares/warrants | 313 | ||
| Other Microfinancing investments | 9 | |||
| Agriculture | ||||
| Black Earth Farming | shares | 124 | ||
| 1 478 |
The Group's liquidity and financing
The Group's available liquidity, including short-term investments and available credit facilities, totalled SEK 5,465 m at 31 December 2011 and SEK 4,923 m at 31 December 2010.
The Group's interest-bearing net debt amounted to SEK 6,539 m and SEK 7,123 m on the same dates. Of the total net debt at 31 December 2011, SEK 5,212 m related to external net debt within Korsnäs or with shares in Korsnäs as collateral.
After the refinancing described under "Events during the fourth quarter" above, the Group's credit facilities carry an interest rate according to Stibor or similar base rate with an average margin of $1.3\%$ ( $1.4\%$ ). All loans have fixed interest terms of no longer than three months. At 31 December 2011, the average remaining duration for all credit facilities amounted to $3.1$ (3.2) years (including the earlier mentioned facility that was signed in December but closed in January 2012).
Of the Group's interest expenses and other financial costs of SEK 328 m (216), interest expenses amounted to SEK 277 m (203). This means that the average interest rate for the year was $3.6\%$ (2.4%) (calculated as interest expense in relation to average interest-bearing liabilities).
The Group's borrowing is primarily arranged in SEK. In 2011, the net flow in foreign currencies, excluding dividends received and investments made, was a net inflow of about SEK 600 m, comprised mainly of Korsnäs' sales in EUR and GBP. For 2012, the net inflow of mainly EUR and GBP is expected to increase to about SEK 800 m.
| Reported | Proportional part of | Change compared to | Jan-Dec 2010 | ||||
|---|---|---|---|---|---|---|---|
| Jan-Dec 2011 (SEK m) | Equity interest 243 | ||||||
| Deliveries, thousand tons | 1 0 0 2 | 1 0 2 1 | 238 | 241 |
Korsnäs Industrial's sales volume divided per product January-December 2011
Numbers in brackets refer to January-December 2010.
Operating profit for the fourth quarter of the year amounted to SEK 123 m, compared with SEK 116 m in the year-earlier period. Operating profit for the fourth quarter
of 2011 includes insurance compensation of SEK 45 m, pertaining to damage to a soda recovery boiler in Frövi, which caused shorter production shutdowns in 2009 and 2010. The results for the fourth quarter were also positively impacted by lower energy costs, as well as higher sales prices. Higher prices for wood and chemicals were the primary contributing factors that had a negative impact on results, compared with the year-earlier period.
Korsnäs' operating profit for the full-year 2011 amounted to SEK 907 m, compared with SEK 926 million in 2010. Operating profit for the current year was adversely impacted by a breakdown of a turbine in Gävle (included below in energy costs). The breakdown is estimated to have caused additional costs of SEK 40 m. Operating profit was also negatively impacted by higher costs for wood and chemicals that were not fully offset by higher sales prices. Despite the negative effects from the breakdown of the turbine, energy costs were lower than the preceding year mainly due to energy investments in Gävle and lower electricity prices. The results for the second quarter of 2010 included strike remuneration of SEK 84 m from the Confederation of Swedish Enterprise as compensation for direct costs resulting from an industrial dispute.
The explanatory items are presented in the table below.
| Explanation items in changes in EBIT (SEK m) | Jan-Dec | Oct-Dec |
|---|---|---|
| revenue | EBITthousand tons |
Korsnäs Industrial's sales volume divided per product January-December 2011
Numbers in brackets refer to January-December 2010.
Operating profit for the fourth quarter of the year amounted to SEK 123 m, compared with SEK 116 m in the year-earlier period. Operating profit for the fourth quarter
of 2011 includes insurance compensation of SEK 45 m, pertaining to damage to a soda recovery boiler in Frövi, which caused shorter production shutdowns in 2009 and 2010. The results for the fourth quarter were also positively impacted by lower energy costs, as well as higher sales prices. Higher prices for wood and chemicals were the primary contributing factors that had a negative impact on results, compared with the year-earlier period.
Korsnäs' operating profit for the full-year 2011 amounted to SEK 907 m, compared with SEK 926 million in 2010. Operating profit for the current year was adversely impacted by a breakdown of a turbine in Gävle (included below in energy costs). The breakdown is estimated to have caused additional costs of SEK 40 m. Operating profit was also negatively impacted by higher costs for wood and chemicals that were not fully offset by higher sales prices. Despite the negative effects from the breakdown of the turbine, energy costs were lower than the preceding year mainly due to energy investments in Gävle and lower electricity prices. The results for the second quarter of 2010 included strike remuneration of SEK 84 m from the Confederation of Swedish Enterprise as compensation for direct costs resulting from an industrial dispute.
The explanatory items are presented in the table below.
| Explanation items in changes in EBIT (SEK m) | Jan-Dec | Oct-Dec |
|---|---|---|
| revenue | EBIT1 0 2 1 |
Korsnäs Industrial's sales volume divided per product January-December 2011
Numbers in brackets refer to January-December 2010.
Operating profit for the fourth quarter of the year amounted to SEK 123 m, compared with SEK 116 m in the year-earlier period. Operating profit for the fourth quarter
of 2011 includes insurance compensation of SEK 45 m, pertaining to damage to a soda recovery boiler in Frövi, which caused shorter production shutdowns in 2009 and 2010. The results for the fourth quarter were also positively impacted by lower energy costs, as well as higher sales prices. Higher prices for wood and chemicals were the primary contributing factors that had a negative impact on results, compared with the year-earlier period.
Korsnäs' operating profit for the full-year 2011 amounted to SEK 907 m, compared with SEK 926 million in 2010. Operating profit for the current year was adversely impacted by a breakdown of a turbine in Gävle (included below in energy costs). The breakdown is estimated to have caused additional costs of SEK 40 m. Operating profit was also negatively impacted by higher costs for wood and chemicals that were not fully offset by higher sales prices. Despite the negative effects from the breakdown of the turbine, energy costs were lower than the preceding year mainly due to energy investments in Gävle and lower electricity prices. The results for the second quarter of 2010 included strike remuneration of SEK 84 m from the Confederation of Swedish Enterprise as compensation for direct costs resulting from an industrial dispute.
The explanatory items are presented in the table below.
| Explanation items in changes in EBIT (SEK m) | Jan-Dec | Oct-Dec |
|---|---|---|
| revenue | EBITorsnäs Industrial's sales volume divided per product January-December 2011 |
Numbers in brackets refer to January-December 2010.
Operating profit for the fourth quarter of the year amounted to SEK 123 m, compared with SEK 116 m in the year-earlier period. Operating profit for the fourth quarter
of 2011 includes insurance compensation of SEK 45 m, pertaining to damage to a soda recovery boiler in Frövi, which caused shorter production shutdowns in 2009 and 2010. The results for the fourth quarter were also positively impacted by lower energy costs, as well as higher sales prices. Higher prices for wood and chemicals were the primary contributing factors that had a negative impact on results, compared with the year-earlier period.
Korsnäs' operating profit for the full-year 2011 amounted to SEK 907 m, compared with SEK 926 million in 2010. Operating profit for the current year was adversely impacted by a breakdown of a turbine in Gävle (included below in energy costs). The breakdown is estimated to have caused additional costs of SEK 40 m. Operating profit was also negatively impacted by higher costs for wood and chemicals that were not fully offset by higher sales prices. Despite the negative effects from the breakdown of the turbine, energy costs were lower than the preceding year mainly due to energy investments in Gävle and lower electricity prices. The results for the second quarter of 2010 included strike remuneration of SEK 84 m from the Confederation of Swedish Enterprise as compensation for direct costs resulting from an industrial dispute.
The explanatory items are presented in the table below.
| Explanation items in changes in EBIT (SEK m) | Jan-Dec | Oct-Dec |
|---|---|---|
| Korsnäs | 100.0% | 8 2 5 4 |
| Millicom | 37.3% | 29 4 27 |
| Tele 2dustrial's sales volume divided per product January-December 2011 |
Numbers in brackets refer to January-December 2010.
Operating profit for the fourth quarter of the year amounted to SEK 123 m, compared with SEK 116 m in the year-earlier period. Operating profit for the fourth quarter
of 2011 includes insurance compensation of SEK 45 m, pertaining to damage to a soda recovery boiler in Frövi, which caused shorter production shutdowns in 2009 and 2010. The results for the fourth quarter were also positively impacted by lower energy costs, as well as higher sales prices. Higher prices for wood and chemicals were the primary contributing factors that had a negative impact on results, compared with the year-earlier period.
Korsnäs' operating profit for the full-year 2011 amounted to SEK 907 m, compared with SEK 926 million in 2010. Operating profit for the current year was adversely impacted by a breakdown of a turbine in Gävle (included below in energy costs). The breakdown is estimated to have caused additional costs of SEK 40 m. Operating profit was also negatively impacted by higher costs for wood and chemicals that were not fully offset by higher sales prices. Despite the negative effects from the breakdown of the turbine, energy costs were lower than the preceding year mainly due to energy investments in Gävle and lower electricity prices. The results for the second quarter of 2010 included strike remuneration of SEK 84 m from the Confederation of Swedish Enterprise as compensation for direct costs resulting from an industrial dispute.
The explanatory items are presented in the table below.
| Explanation items in changes in EBIT (SEK m) | Jan-Dec | Oct-Dec |
|---|---|---|
| 30.5% | 40 750 | |
| Transcom | 33.0% | 5 0 0 5 |
| MTG. | 20.3% | 13 473 |
| Metro | 46.6% | 1 7 7 9 |
| CDON profit for the fourth quarter of the year amounted to SEK 123 m, compared with SEK 116 m in the year-earlier period. Operating profit for the fourth quarter |
of 2011 includes insurance compensation of SEK 45 m, pertaining to damage to a soda recovery boiler in Frövi, which caused shorter production shutdowns in 2009 and 2010. The results for the fourth quarter were also positively impacted by lower energy costs, as well as higher sales prices. Higher prices for wood and chemicals were the primary contributing factors that had a negative impact on results, compared with the year-earlier period.
Korsnäs' operating profit for the full-year 2011 amounted to SEK 907 m, compared with SEK 926 million in 2010. Operating profit for the current year was adversely impacted by a breakdown of a turbine in Gävle (included below in energy costs). The breakdown is estimated to have caused additional costs of SEK 40 m. Operating profit was also negatively impacted by higher costs for wood and chemicals that were not fully offset by higher sales prices. Despite the negative effects from the breakdown of the turbine, energy costs were lower than the preceding year mainly due to energy investments in Gävle and lower electricity prices. The results for the second quarter of 2010 included strike remuneration of SEK 84 m from the Confederation of Swedish Enterprise as compensation for direct costs resulting from an industrial dispute.
The explanatory items are presented in the table below.
| Explanation items in changes in EBIT (SEK m) | Jan-Dec | Oct-Dec |
|---|---|---|
| 25.1% | 3 4 0 4 | |
| Black Earth Farming 1)ompensation of SEK 45 m, pertaining to damage to a soda recovery boiler in Frövi, which caused shorter production shutdowns in 2009 and 2010. The results for the fourth quarter were also positively impacted by lower energy costs, as well as higher sales prices. Higher prices for wood and chemicals were the primary contributing factors that had a negative impact on results, compared with the year-earlier period. |
Korsnäs' operating profit for the full-year 2011 amounted to SEK 907 m, compared with SEK 926 million in 2010. Operating profit for the current year was adversely impacted by a breakdown of a turbine in Gävle (included below in energy costs). The breakdown is estimated to have caused additional costs of SEK 40 m. Operating profit was also negatively impacted by higher costs for wood and chemicals that were not fully offset by higher sales prices. Despite the negative effects from the breakdown of the turbine, energy costs were lower than the preceding year mainly due to energy investments in Gävle and lower electricity prices. The results for the second quarter of 2010 included strike remuneration of SEK 84 m from the Confederation of Swedish Enterprise as compensation for direct costs resulting from an industrial dispute.
The explanatory items are presented in the table below.
| Explanation items in changes in EBIT (SEK m) | Jan-Dec | Oct-Dec |
|---|---|---|
| 24.9% | 353 | |
| Other holdings | ||
| Total sum of Kinnevik's proportional part | ||
| of revenue and operating result | ||
| 1)anatory items are presented in the table below. |
| Explanation items in changes in EBIT (SEK m) | Jan-Dec | Oct-Dec |
|---|---|---|
| Reported with one quarter's delay |
Kinnevik's proportional part of revenue and operating result in its holdings
The table above is a compilation of the holdings' revenues and operating result reported for 2011. Divested operations, assets held for sale and one-off items have been excluded.
Revenues and operating result reported by the companies have been multiplied by Kinnevik's ownership share at the end of the reporting period, thereby showing Kinnevik's proportional share of the companies' revenues and operating result. Constant exchange rates
(average rate for 2011) have been used when translating revenue and EBIT from each company's reporting currency into Swedish kronor.
The proportional share of revenues and operating result has no connection with Kinnevik's accounting and is only additional information.
Book and fair value of assets
| 31 Dec 2011 | ||||||
|---|---|---|---|---|---|---|
| Equity interest |
Voting interest |
Book value 2011 |
Fair value 2011 |
Fair value 2010 |
Total return |
|
| SEK million | (%) | (%) | 31 Dec | 31 Dec | 31 Dec | 2011 6) |
| Paper & packaging | ||||||
| Korsnäs Industrial and Forestry | 100 | 100 | 7 627 | 9 551 1) | 9 774 1) | |
| Bergvik Skog 2) | 5 | 5 | 653 | 653 | 556 | |
| Interest bearing net debt relating to Korsnäs | -5 212 | -5 212 | -5 575 | |||
| Total Paper & packaging | 3 068 | 4 992 | 4 755 | |||
| Telecom & services | ||||||
| Millicom Tele2 |
37.3 30.5 |
37.3 47.7 |
26 088 18 129 |
26 088 18 129 |
24 309 18 915 |
12% 15% |
| Transcom | 33.0 | 39.7 | 189 | 189 | 333 | -95% |
| Total Telecom and services | 44 406 | 44 406 | 43 557 | |||
| Media | ||||||
| MTG | 20.3 | 49.9 | 4 436 | 4 436 | 6 009 | -24% |
| Metro shares | 46.6 | 42.4 | 148 | 148 | 285 | -48% |
| Metro warrants 3) | 129 | 129 | 374 | -65% | ||
| Metro subordinated debentures, interest bearing | 263 | 287 | 268 | |||
| Total Media | 4 976 | 5 000 | 6 936 | |||
| Online | ||||||
| Rocket Internet with portfolio companies | 5 434 | 5 434 | 957 | |||
| Groupon, direct owned shares | 1 197 | 1 197 | 450 | |||
| Avito (directly and through Vosvik) | 52 4) | 28 | 336 | 336 | 274 | |
| CDON | 25.1 | 25.1 | 629 | 629 | 420 | 22% |
| Other Online investments | 157 | 204 | 95 | |||
| Total Online | 7 753 | 7 800 | 2 196 | |||
| Microfinancing | ||||||
| Bayport | 37 5) | 37 5) | 405 | 405 | 332 | |
| Other Microfinancing investments | 33 | 41 | 16 | |||
| Total Microfinancing | 438 | 446 | 348 | |||
| Agriculture | ||||||
| Black Earth Farming | 24.9 | 24.9 | 427 | 427 | 824 | -48% |
| Rolnyvik | 100 | 100 | 181 | 250 | 250 | |
| RawAgro | - | - | 21 | |||
| Total Agriculture | 608 | 677 | 1 095 | |||
| Renewable energy | ||||||
| Latgran | 75 | 75 | 144 | 245 | 259 | |
| Vireo | 75 | 75 | 29 | 58 | 8 | |
| Total Renewable energy | 173 | 303 | 267 | |||
| Interest bearing net debt against listed holdings | -1 605 | -1 605 | -1 706 | |||
| Debt, unpaid investments | -490 | -490 | - | |||
| Other assets and liabilities | 310 | 310 | 65 | |||
| Total equity/net asset value | 59 637 | 61 839 | 57 513 | |||
| Net asset value per share | 223.10 | 207.51 | ||||
| Closing price, class B share | 133.80 | 137.00 | 1% | |||
| 1) Consensus among analysts covering Kinnevik. | ||||||
2) Corresponding to 5% of the company's equity.
3) Warrants in Metro are valued at fair value.
4) After full dilution.
5) After warrants have been utilised.
6) Including dividends received.
Kinnevik's holdings
Paper & Packaging
Korsnäs
Korsnäs, a wholly owned subsidiary of Kinnevik, is the second largest producer in the world of liquid packaging board, the second largest when it comes to coated white top liner and one of the largest producers of cartonboard. With its vast experience, solid competence and advanced technology, Korsnäs nurtures its ambition to constantly develop and improve its products and services to bring benefit to its customers. The company has two fully integrated mills in Gävle and Frövi and produces CTMP pulp for internal use in Rockhammar. Korsnäs Forestry is responsible for purchases of wood and fiber for Korsnäs Industrial and also conducts external sales, primarily of saw logs. Korsnäs also owns 5% of the shares in Bergvik Skog AB.
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (SEK m) | 2011 | 2010 | 2011 | 2010 |
| Korsnäs Industrial | ||||
| Revenue | 7 1 2 9 | 7 1 4 8 | 1 7 2 3 | 1 751 |
| EBIT-------------------------------- | --------- | --------- | --------- | --------- |
| Key data (USD m) | 2011 | 2010 1) | 2011 | 2010 1) |
| Revenue | 4 530 | 4 018 | 1 177 | 1 069 |
| EBITDA | 2 087 | 1 896 | 536 | 497 |
| Operating profit, EBIT | 1 257 | 1 083 | 333 | 281 |
| Net profit | 925 | 1 620 | 180 | 206 |
| Number of mobile subscribers (million) | 43.1 | 38.6 |
1) Pro forma figures to reflect the full consolidation of Honduras
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B TIBSFCVZCBDLQSPHSBNPGVQUP64%NIBTCFFO BQQSPWFECZUIF#PBSE
Tele2
5FMFPGGFSTQSPEVDUTBOETFSWJDFTXJUIJOmYFEBOENPCJMF UFMFQIPOZ
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DPNQVUFSOFUXPSLTBOEDBCMF57 XJUIBHFPHSBQIJDBMGPDVTPO3VTTJB
&BTUFSO&VSPQFBOE UIF/PSEJDT
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (SEK m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 40 750 | 40 164 | 10 839 | 10 109 |
| EBITDA | 10 852 | 10 284 | 2 791 | 2 488 |
| Operating profit, EBIT | 6 968 | 7 088 | 1 640 | 1 356 |
| Net profit | 4 904 | 6 481 | 1 311 | 1 099 |
| Number of subscribers (million) | 34.2 | 30.9 |
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Kinnevik's holdings
the expansion of the smartphone market in particular. In Sweden, the roll out of the new 2G and 4G network in the country accelerated to meet increasing data demand from the customers. In Norway, the integration of Network Norway proceeded ahead of plan.
Operations in the Netherlands reached higher EBITDA levels on increased scale. After a successful pilot project, Tele2 is evaluating the potential of 4G networks as the regulatory and market environments seem favourable for a value driven telecom competitor.
Tele2 Kazakhstan demonstrated solid revenue growth substantially increasing its customer base to 1.4 million.
The Board of Tele2 has decided to recommend an increase in the ordinary dividend of 8% to SEK 6.50 (6.00) per share in respect of the financial year 2011. The Board also decided to recommend an extraordinary dividend of SEK 6.50 (21.00).
Transcom
Transcom is active within outsourcing of Customer Relationship Management (CRM) and Credit Management Services. Today the company is employing more than 22,500 people delivering services from 29 countries.
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (EUR m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 554.1 | 589.1 | 142.8 | 148.7 |
| Operating profit/loss, EBIT | $-28.0$ | -6.5 | 2.0 | $-19.1$ |
| Net profit/loss | $-49.4$ | -80 | $-0.4$ | $-17.0$ |
2011 has been a difficult and turbulent year with disappointing results for Transcom. The target is to reverse the company's negative development and return to growth and improved profitability.
Transcom's revenue in 2011 was EUR 554.1 m, a decrease by 5.9% compared to 2010. Iberia and the North region are performing well despite tough economic and business conditions. North America & Asia Pacific is facing changing delivery demands and volume growth mainly in Asia. West & Central results are disappointing and France is facing a lengthy restructuring process.
Transcom enters 2012 with a stronger balance sheet after the recently completed rights issue. The restructuring program announced in the second quarter of 2011 is still underway. The successful completion of these restructuring actions is an important short-term focus area and Transcom continues to look for areas for improvement in order to achieve a financial uplift. The target is to optimize capacity and that will continue to be a focus area throughout 2012 as the company reviews its global delivery footprint.
Kinnevik's holdings
Media
,JOOFWJLTNFEJBDPNQBOJFTIBWFPQFSBUJPOTJOBUPUBMPG NBSLFUTBOEBDPNCJOFESFBDIPGNJMMJPOEBJMZ57 WJFXFSTJO.5(BOENJMMJPOEBJMZSFBEFSTJO.FUSP
Modern Times Group MTG
.5(JTBOJOUFSOBUJPOBMNFEJBDPNQBOZXJUIUIFTFDPOE MBSHFTUHFPHSBQIJDTQSFBEJOSBEJPBOE57PQFSBUJPOTJO &VSPQF.5(TGSFFBOEQBZ57DIBOOFMTSFBDINPSFUIBO NJMMJPOQFPQMFJODPVOUSJFT
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (SEK m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 13 473 | 13 101 | 3 711 | 3 618 |
| Operating profit/loss, EBIT | -637 | 2 355 | -2 517 | 746 |
| Net profit/loss | -1 289 | 3 541 | -2 564 | 2 359 |
"MMGPVSPG.5(TCSPBEDBTUJOHCVTJOFTTFTSFQPSUFE HSPXJOHSFWFOVFTJOUIFRVBSUFSBOEGPSUIFGVMMZFBS
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CVUUIFVOEFSMZJOHQSPmUBCJMJUZ BOEDBTInPXTSFNBJOIFBMUIZBOE.5(DPOUJOVFTUPFY-QMPSFOFXHSPXUIPQQPSUVOJUJFT
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Metro
.FUSPJTUIFXPSMETMBSHFTUJOUFSOBUJPOBMEBJMZOFXTQBQFS .FUSPJTQVCMJTIFEJOPWFSNBKPSDJUJFTJODPVOUSJFT BDSPTT&VSPQF
/PSUI4PVUI"NFSJDBBOE"TJB.FUSP BUUSBDUTBOBVEJFODFPGNJMMJPOEBJMZSFBEFST
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (EUR m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 197 | 175 | 58 | 56 |
| Operating profit, EBIT | 19.4 | 11.7 | 14.6 | 7.5 |
| Net result | 4.7 | 2.9 | 11.4 | 5.7 |
Information in table above refer to continuing operations.
'PS.FUSP
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%FONBSL
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*O'FCSVBSZ
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Kinnevik's holdings
| Investment (SEK m) | | 859 | 879 | 107 | 105 |
| Operating margin | 12.0% | 12.3% | 6.2% | 6.0% |
| Korsnäs Forestry | | | | |
| Revenue | 1 1 2 5 | 1 0 3 0 | 290 | 247 |
| FBITng profit, EBIT | 1 257 | 1 083 | 333 | 281 |
| Net profit | 925 | 1 620 | 180 | 206 |
| Number of mobile subscribers (million) | 43.1 | 38.6 | | |
1) Pro forma figures to reflect the full consolidation of Honduras
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&OUFSUBJONFOU
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*O-BUJO"NFSJDB
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*O"GSJDB
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B TIBSFCVZCBDLQSPHSBNPGVQUP64%NIBTCFFO BQQSPWFECZUIF#PBSE
Tele2
5FMFPGGFSTQSPEVDUTBOETFSWJDFTXJUIJOmYFEBOENPCJMF UFMFQIPOZ
CSPBECBOE
DPNQVUFSOFUXPSLTBOEDBCMF57 XJUIBHFPHSBQIJDBMGPDVTPO3VTTJB
&BTUFSO&VSPQFBOE UIF/PSEJDT
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (SEK m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 40 750 | 40 164 | 10 839 | 10 109 |
| EBITDA | 10 852 | 10 284 | 2 791 | 2 488 |
| Operating profit, EBIT | 6 968 | 7 088 | 1 640 | 1 356 |
| Net profit | 4 904 | 6 481 | 1 311 | 1 099 |
| Number of subscribers (million) | 34.2 | 30.9 |
5IFGPVSUIRVBSUFSDPOmSNFEUIFNPNFOUVNPG 5FMFTHSPXUIXJUIUIFDPNQMFUJPOPGBDRVJTJUJPOTJO/PS-XBZ /FUXPSL/PSXBZ BOEJO"VTUSJB 4JMWFS4FSWFS UIF MBVODIPGNPCJMFTFSWJDFTJOPVUPGSFHJPOTJO,B[BL-ITUBOBOEUIFBDRVJTJUJPOPGTQFDUSVNJO4XFEFO
&TUPOJB -JUIVBOJB
-BUWJBBOE,B[BLITUBOUPDPOUSJCVUFUP5FMFT EBUBTUSBUFHJFT
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Kinnevik's holdings
the expansion of the smartphone market in particular. In Sweden, the roll out of the new 2G and 4G network in the country accelerated to meet increasing data demand from the customers. In Norway, the integration of Network Norway proceeded ahead of plan.
Operations in the Netherlands reached higher EBITDA levels on increased scale. After a successful pilot project, Tele2 is evaluating the potential of 4G networks as the regulatory and market environments seem favourable for a value driven telecom competitor.
Tele2 Kazakhstan demonstrated solid revenue growth substantially increasing its customer base to 1.4 million.
The Board of Tele2 has decided to recommend an increase in the ordinary dividend of 8% to SEK 6.50 (6.00) per share in respect of the financial year 2011. The Board also decided to recommend an extraordinary dividend of SEK 6.50 (21.00).
Transcom
Transcom is active within outsourcing of Customer Relationship Management (CRM) and Credit Management Services. Today the company is employing more than 22,500 people delivering services from 29 countries.
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (EUR m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 554.1 | 589.1 | 142.8 | 148.7 |
| Operating profit/loss, EBIT | $-28.0$ | -6.5 | 2.0 | $-19.1$ |
| Net profit/loss | $-49.4$ | -80 | $-0.4$ | $-17.0$ |
2011 has been a difficult and turbulent year with disappointing results for Transcom. The target is to reverse the company's negative development and return to growth and improved profitability.
Transcom's revenue in 2011 was EUR 554.1 m, a decrease by 5.9% compared to 2010. Iberia and the North region are performing well despite tough economic and business conditions. North America & Asia Pacific is facing changing delivery demands and volume growth mainly in Asia. West & Central results are disappointing and France is facing a lengthy restructuring process.
Transcom enters 2012 with a stronger balance sheet after the recently completed rights issue. The restructuring program announced in the second quarter of 2011 is still underway. The successful completion of these restructuring actions is an important short-term focus area and Transcom continues to look for areas for improvement in order to achieve a financial uplift. The target is to optimize capacity and that will continue to be a focus area throughout 2012 as the company reviews its global delivery footprint.
Kinnevik's holdings
Media
,JOOFWJLTNFEJBDPNQBOJFTIBWFPQFSBUJPOTJOBUPUBMPG NBSLFUTBOEBDPNCJOFESFBDIPGNJMMJPOEBJMZ57 WJFXFSTJO.5(BOENJMMJPOEBJMZSFBEFSTJO.FUSP
Modern Times Group MTG
.5(JTBOJOUFSOBUJPOBMNFEJBDPNQBOZXJUIUIFTFDPOE MBSHFTUHFPHSBQIJDTQSFBEJOSBEJPBOE57PQFSBUJPOTJO &VSPQF.5(TGSFFBOEQBZ57DIBOOFMTSFBDINPSFUIBO NJMMJPOQFPQMFJODPVOUSJFT
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (SEK m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 13 473 | 13 101 | 3 711 | 3 618 |
| Operating profit/loss, EBIT | -637 | 2 355 | -2 517 | 746 |
| Net profit/loss | -1 289 | 3 541 | -2 564 | 2 359 |
"MMGPVSPG.5(TCSPBEDBTUJOHCVTJOFTTFTSFQPSUFE HSPXJOHSFWFOVFTJOUIFRVBSUFSBOEGPSUIFGVMMZFBS
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4BMFTGPSUIF4DBOEJOBWJBOGSFF57PQFSBUJPOTXFSFVQ ZFBSPOZFBSBTUIFBEWFSUJTJOHNBSLFUTDPOUJOVFEUPHSPX .5(TWJFXFSSBUJOHTJTTVFTBSFCFJOHBEESFTTFE
BOEUIF TQSJOHTDIFEVMFTBSFOPXCFJOHMBVODIFE5IF/PSEJD QBZ57TVCTDSJCFSCBTFDPOUJOVFTUPHSPXBOEUIF7JBQMBZ POMJOFTFSWJDFJTEFWFMPQJOHBDDPSEJOHUPQMBO
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5IFGPVSUIRVBSUFSSFTVMUTXFSFJNQBDUFECZBOVNCFS PGOPOSFDVSSJOHBOEQSJNBSJMZOPODBTIJUFNTGPMMPXJOH ZFBSFOEJNQBJSNFOUUFTUT
CVUUIFVOEFSMZJOHQSPmUBCJMJUZ BOEDBTInPXTSFNBJOIFBMUIZBOE.5(DPOUJOVFTUPFY-QMPSFOFXHSPXUIPQQPSUVOJUJFT
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Metro
.FUSPJTUIFXPSMETMBSHFTUJOUFSOBUJPOBMEBJMZOFXTQBQFS .FUSPJTQVCMJTIFEJOPWFSNBKPSDJUJFTJODPVOUSJFT BDSPTT&VSPQF
/PSUI4PVUI"NFSJDBBOE"TJB.FUSP BUUSBDUTBOBVEJFODFPGNJMMJPOEBJMZSFBEFST
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (EUR m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 197 | 175 | 58 | 56 |
| Operating profit, EBIT | 19.4 | 11.7 | 14.6 | 7.5 |
| Net result | 4.7 | 2.9 | 11.4 | 5.7 |
Information in table above refer to continuing operations.
'PS.FUSP
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%FONBSL
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NBSLFUDPOEJUJPOTBSFUPVHIXJUIUIFJODSFBTFE DPNQFUJUJPOCVU.FUSPIBTQFSGPSNFESFMBUJWFMZXFMM
5PDBQJUBMJ[FPOUIFHSPXJOHBEWFSUJTJOHNBSLFUJO-BUJO "NFSJDB
.FUSPIBTMBVODIFEJO\$PMPNCJB
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*O'FCSVBSZ
,JOOFWJLBOOPVODFEBSFDPNNFOEFE QVCMJDBMMDBTIPGGFSUPUIFPXOFSTPGTIBSFT
XBSSBOUTBOE EFCFOUVSFTJO.FUSP5IFPGGFSWBMVFT.FUSPBUBQQSPYJNB-UFMZ4&,
NBOEUIFBDDFQUBODFQFSJPEJTFYQFDUFEUP DPNNFODFPO'FCSVBSZBOEFOEPO.BSDI TFF QBHFGPSGVSUIFSJOGPSNBUJPO
Kinnevik's holdings
| Investment (SEK m) | | 48 | 47 | 16 | 11 |
| Korsnäs Group | | | | |
| Revenue | 8 2 5 4 | 8 1 7 8 | 2013 | 1998 |
| FBITorma figures to reflect the full consolidation of Honduras
.JMMJDPNTUPQMJOFHSFXCZJO2BOE DMPTFEUIFZFBSXJUIBOPSHBOJDSFWFOVFHSPXUIPG %FTQJUFUIFDPOUJOVFEJOWFTUNFOUTJOEBUBBOE.PCJMF'J-OBODJBM4FSWJDFT .'4 .JMMJDPNBDIJFWFEBO&#*5%"NBS-HJOPGGPSUIFZFBS*O2
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NBSHJOT TUJMMFYDFFEFE'PDVTJOUIFGPVSUIRVBSUFSSFNBJOFE POHSPXJOHSFWFOVFTUISPVHIJOOPWBUJWFQSPEVDUTJOUIF *OGPSNBUJPO
&OUFSUBJONFOU
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4PMVUJPOTBOE.'4DBUFHPSJFTDPNCJOFEOPX DPOUSJCVUFJOFYDFTTPGPGSFDVSSJOHSFWFOVFT
*O-BUJO"NFSJDB
7BMVF"EEFE4FSWJDFTOPXBNPVOUT UPNPSFUIBOPOFUIJSEPGSFWFOVFT0WFSUIFUISFFZFBST TJODFJUTBDRVJTJUJPO
UIFDBCMFCVTJOFTTJO\$FOUSBM"NFSJDB IBTEFMJWFSFEBDPNQPVOEFEBOOVBMHSPXUISBUFPGJO SFWFOVFXIJMFNBJOUBJOJOHBIFBMUIZ&#*5%"NBSHJO
*O"GSJDB
UPQMJOFHSPXUIJOMPDBMDVSSFODZSFBDIFE JO2
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2.JMMJDPNFYQFDUTNFBTVSFTJNQMFNFOUFEJO(IBOB BOE4FOFHBMUPSFTVMUJOJNQSPWFEQFSGPSNBODFJO *O3XBOEB
UXPZFBSTTJODFMBVODI
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BTDSJUJDBMNBTTXBTSFBDIFE XJUIPOFUIJSEPGUIFNBSLFUVTJOH.JMMJDPNTOFUXPSL
5IF#PBSEPG%JSFDUPSTXJMMQSPQPTFUPUIF.BZ "(.
UIFQBZNFOUPGB64%TIBSFPSEJOBSZEJWJEFOE BOJODSFBTFPGWFSTVTMBTUZFBS'PSUIFZFBS
B TIBSFCVZCBDLQSPHSBNPGVQUP64%NIBTCFFO BQQSPWFECZUIF#PBSE
Tele2
5FMFPGGFSTQSPEVDUTBOETFSWJDFTXJUIJOmYFEBOENPCJMF UFMFQIPOZ
CSPBECBOE
DPNQVUFSOFUXPSLTBOEDBCMF57 XJUIBHFPHSBQIJDBMGPDVTPO3VTTJB
&BTUFSO&VSPQFBOE UIF/PSEJDT
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (SEK m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 40 750 | 40 164 | 10 839 | 10 109 |
| EBITDA | 10 852 | 10 284 | 2 791 | 2 488 |
| Operating profit, EBIT | 6 968 | 7 088 | 1 640 | 1 356 |
| Net profit | 4 904 | 6 481 | 1 311 | 1 099 |
| Number of subscribers (million) | 34.2 | 30.9 |
5IFGPVSUIRVBSUFSDPOmSNFEUIFNPNFOUVNPG 5FMFTHSPXUIXJUIUIFDPNQMFUJPOPGBDRVJTJUJPOTJO/PS-XBZ /FUXPSL/PSXBZ BOEJO"VTUSJB 4JMWFS4FSWFS UIF MBVODIPGNPCJMFTFSWJDFTJOPVUPGSFHJPOTJO,B[BL-ITUBOBOEUIFBDRVJTJUJPOPGTQFDUSVNJO4XFEFO
&TUPOJB -JUIVBOJB
-BUWJBBOE,B[BLITUBOUPDPOUSJCVUFUP5FMFT EBUBTUSBUFHJFT
5FMFXPOOFXSFHJPOTJO3VTTJB
CSJOHJOHUIFUPUBMUP 5FMF3VTTJBBEEFENPSFUIBONJMMJPODVTUPNFST JOPVUPGNJMMJPOGPSUIFHSPVQ"TUIF3VTTJBO NBSLFUNBUVSFT
5FMFJOUFOETUPTIJGUUIFJSGPDVTGSPN WPMVNFUPWBMVF
5FMFT/PSEJDPQFSBUJPOTDPOUJOVFUPTIPXHSPXUIXJUI
Kinnevik's holdings
the expansion of the smartphone market in particular. In Sweden, the roll out of the new 2G and 4G network in the country accelerated to meet increasing data demand from the customers. In Norway, the integration of Network Norway proceeded ahead of plan.
Operations in the Netherlands reached higher EBITDA levels on increased scale. After a successful pilot project, Tele2 is evaluating the potential of 4G networks as the regulatory and market environments seem favourable for a value driven telecom competitor.
Tele2 Kazakhstan demonstrated solid revenue growth substantially increasing its customer base to 1.4 million.
The Board of Tele2 has decided to recommend an increase in the ordinary dividend of 8% to SEK 6.50 (6.00) per share in respect of the financial year 2011. The Board also decided to recommend an extraordinary dividend of SEK 6.50 (21.00).
Transcom
Transcom is active within outsourcing of Customer Relationship Management (CRM) and Credit Management Services. Today the company is employing more than 22,500 people delivering services from 29 countries.
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (EUR m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 554.1 | 589.1 | 142.8 | 148.7 |
| Operating profit/loss, EBIT | $-28.0$ | -6.5 | 2.0 | $-19.1$ |
| Net profit/loss | $-49.4$ | -80 | $-0.4$ | $-17.0$ |
2011 has been a difficult and turbulent year with disappointing results for Transcom. The target is to reverse the company's negative development and return to growth and improved profitability.
Transcom's revenue in 2011 was EUR 554.1 m, a decrease by 5.9% compared to 2010. Iberia and the North region are performing well despite tough economic and business conditions. North America & Asia Pacific is facing changing delivery demands and volume growth mainly in Asia. West & Central results are disappointing and France is facing a lengthy restructuring process.
Transcom enters 2012 with a stronger balance sheet after the recently completed rights issue. The restructuring program announced in the second quarter of 2011 is still underway. The successful completion of these restructuring actions is an important short-term focus area and Transcom continues to look for areas for improvement in order to achieve a financial uplift. The target is to optimize capacity and that will continue to be a focus area throughout 2012 as the company reviews its global delivery footprint.
Kinnevik's holdings
Media
,JOOFWJLTNFEJBDPNQBOJFTIBWFPQFSBUJPOTJOBUPUBMPG NBSLFUTBOEBDPNCJOFESFBDIPGNJMMJPOEBJMZ57 WJFXFSTJO.5(BOENJMMJPOEBJMZSFBEFSTJO.FUSP
Modern Times Group MTG
.5(JTBOJOUFSOBUJPOBMNFEJBDPNQBOZXJUIUIFTFDPOE MBSHFTUHFPHSBQIJDTQSFBEJOSBEJPBOE57PQFSBUJPOTJO &VSPQF.5(TGSFFBOEQBZ57DIBOOFMTSFBDINPSFUIBO NJMMJPOQFPQMFJODPVOUSJFT
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (SEK m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 13 473 | 13 101 | 3 711 | 3 618 |
| Operating profit/loss, EBIT | -637 | 2 355 | -2 517 | 746 |
| Net profit/loss | -1 289 | 3 541 | -2 564 | 2 359 |
"MMGPVSPG.5(TCSPBEDBTUJOHCVTJOFTTFTSFQPSUFE HSPXJOHSFWFOVFTJOUIFRVBSUFSBOEGPSUIFGVMMZFBS
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4BMFTGPSUIF4DBOEJOBWJBOGSFF57PQFSBUJPOTXFSFVQ ZFBSPOZFBSBTUIFBEWFSUJTJOHNBSLFUTDPOUJOVFEUPHSPX .5(TWJFXFSSBUJOHTJTTVFTBSFCFJOHBEESFTTFE
BOEUIF TQSJOHTDIFEVMFTBSFOPXCFJOHMBVODIFE5IF/PSEJD QBZ57TVCTDSJCFSCBTFDPOUJOVFTUPHSPXBOEUIF7JBQMBZ POMJOFTFSWJDFJTEFWFMPQJOHBDDPSEJOHUPQMBO
5IFFNFSHJOHNBSLFUGSFF57PQFSBUJPOTIBWFUBLFO NBSLFUTIBSFBOEPVUQFSGPSNFEJOBEWFSUJTJOHNBSLFUTUIBU BSFTUJMMMBHHJOHUIFSFDPWFSZJOXFTUFSO&VSPQF
XIJMTUUIF FNFSHJOHNBSLFUQBZ57PQFSBUJPOTBSFSFQPSUJOHDPOUJ-OVFETUSPOHTVCTDSJCFSJOUBLF.5(TCVTJOFTTFTIBWFTPNF PGUIFIJHIFTUNBSHJOTJOUIF&VSPQFBOCSPBEDBTUJOHJOEV-TUSZEFTQJUFUIFGBDUUIBUUIFDPNQBOZDPOUJOVFTUPJOWFTU JOQSPHSBNNJOHDPOUFOU
OFXUFDIOPMPHJFTBOETVCTDSJCFS BDRVJTJUJPO
5IFGPVSUIRVBSUFSSFTVMUTXFSFJNQBDUFECZBOVNCFS PGOPOSFDVSSJOHBOEQSJNBSJMZOPODBTIJUFNTGPMMPXJOH ZFBSFOEJNQBJSNFOUUFTUT
CVUUIFVOEFSMZJOHQSPmUBCJMJUZ BOEDBTInPXTSFNBJOIFBMUIZBOE.5(DPOUJOVFTUPFY-QMPSFOFXHSPXUIPQQPSUVOJUJFT
5IF#PBSEPG%JSFDUPSTXJMMQSPQPTFUPUIF"OOVBM (FOFSBM.FFUJOHPGTIBSFIPMEFSTBOJODSFBTFEPSEJOBSZEJ-WJEFOEPG4&, QFSTIBSF5IF#PBSEPG%JSFDUPST IBTBEPQUFEBEJWJEFOEQPMJDZUPEJTUSJCVUFBNJOJNVNPG PGFBDIZFBSTSFDVSSJOHOFUQSPmUUPTIBSFIPMEFSTJO UIFGPSNPGBOBOOVBMPSEJOBSZEJWJEFOE
Metro
.FUSPJTUIFXPSMETMBSHFTUJOUFSOBUJPOBMEBJMZOFXTQBQFS .FUSPJTQVCMJTIFEJOPWFSNBKPSDJUJFTJODPVOUSJFT BDSPTT&VSPQF
/PSUI4PVUI"NFSJDBBOE"TJB.FUSP BUUSBDUTBOBVEJFODFPGNJMMJPOEBJMZSFBEFST
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (EUR m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 197 | 175 | 58 | 56 |
| Operating profit, EBIT | 19.4 | 11.7 | 14.6 | 7.5 |
| Net result | 4.7 | 2.9 | 11.4 | 5.7 |
Information in table above refer to continuing operations.
'PS.FUSP
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NBSLFUDPOEJUJPOTBSFUPVHIXJUIUIFJODSFBTFE DPNQFUJUJPOCVU.FUSPIBTQFSGPSNFESFMBUJWFMZXFMM
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*O'FCSVBSZ
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Kinnevik's holdings
| Investment (SEK m) | | 907 | 926 | 123 | 116 |
| Operating margin | 11.0% | 11.3% | 6.1% | 5.8% |
| Return on operational capital | 11.0% | 11.9% | 5.8% | 5.9% |
| Cash flow dataXCZJO2BOE DMPTFEUIFZFBSXJUIBOPSHBOJDSFWFOVFHSPXUIPG %FTQJUFUIFDPOUJOVFEJOWFTUNFOUTJOEBUBBOE.PCJMF'J-OBODJBM4FSWJDFT .'4 .JMMJDPNBDIJFWFEBO&#*5%"NBS-HJOPGGPSUIFZFBS*O2
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&OUFSUBJONFOU
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4PMVUJPOTBOE.'4DBUFHPSJFTDPNCJOFEOPX DPOUSJCVUFJOFYDFTTPGPGSFDVSSJOHSFWFOVFT
*O-BUJO"NFSJDB
7BMVF"EEFE4FSWJDFTOPXBNPVOUT UPNPSFUIBOPOFUIJSEPGSFWFOVFT0WFSUIFUISFFZFBST TJODFJUTBDRVJTJUJPO
UIFDBCMFCVTJOFTTJO\$FOUSBM"NFSJDB IBTEFMJWFSFEBDPNQPVOEFEBOOVBMHSPXUISBUFPGJO SFWFOVFXIJMFNBJOUBJOJOHBIFBMUIZ&#*5%"NBSHJO
*O"GSJDB
UPQMJOFHSPXUIJOMPDBMDVSSFODZSFBDIFE JO2
BOJNQSPWFNFOUWFSTVTUIFHSPXUISBUFJO
2.JMMJDPNFYQFDUTNFBTVSFTJNQMFNFOUFEJO(IBOB BOE4FOFHBMUPSFTVMUJOJNQSPWFEQFSGPSNBODFJO *O3XBOEB
UXPZFBSTTJODFMBVODI
UIFDPVOUSZUVSOFE &#*5%"QPTJUJWFJO%FDFNCFS
BTDSJUJDBMNBTTXBTSFBDIFE XJUIPOFUIJSEPGUIFNBSLFUVTJOH.JMMJDPNTOFUXPSL
5IF#PBSEPG%JSFDUPSTXJMMQSPQPTFUPUIF.BZ "(.
UIFQBZNFOUPGB64%TIBSFPSEJOBSZEJWJEFOE BOJODSFBTFPGWFSTVTMBTUZFBS'PSUIFZFBS
B TIBSFCVZCBDLQSPHSBNPGVQUP64%NIBTCFFO BQQSPWFECZUIF#PBSE
Tele2
5FMFPGGFSTQSPEVDUTBOETFSWJDFTXJUIJOmYFEBOENPCJMF UFMFQIPOZ
CSPBECBOE
DPNQVUFSOFUXPSLTBOEDBCMF57 XJUIBHFPHSBQIJDBMGPDVTPO3VTTJB
&BTUFSO&VSPQFBOE UIF/PSEJDT
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (SEK m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 40 750 | 40 164 | 10 839 | 10 109 |
| EBITDA | 10 852 | 10 284 | 2 791 | 2 488 |
| Operating profit, EBIT | 6 968 | 7 088 | 1 640 | 1 356 |
| Net profit | 4 904 | 6 481 | 1 311 | 1 099 |
| Number of subscribers (million) | 34.2 | 30.9 |
5IFGPVSUIRVBSUFSDPOmSNFEUIFNPNFOUVNPG 5FMFTHSPXUIXJUIUIFDPNQMFUJPOPGBDRVJTJUJPOTJO/PS-XBZ /FUXPSL/PSXBZ BOEJO"VTUSJB 4JMWFS4FSWFS UIF MBVODIPGNPCJMFTFSWJDFTJOPVUPGSFHJPOTJO,B[BL-ITUBOBOEUIFBDRVJTJUJPOPGTQFDUSVNJO4XFEFO
&TUPOJB -JUIVBOJB
-BUWJBBOE,B[BLITUBOUPDPOUSJCVUFUP5FMFT EBUBTUSBUFHJFT
5FMFXPOOFXSFHJPOTJO3VTTJB
CSJOHJOHUIFUPUBMUP 5FMF3VTTJBBEEFENPSFUIBONJMMJPODVTUPNFST JOPVUPGNJMMJPOGPSUIFHSPVQ"TUIF3VTTJBO NBSLFUNBUVSFT
5FMFJOUFOETUPTIJGUUIFJSGPDVTGSPN WPMVNFUPWBMVF
5FMFT/PSEJDPQFSBUJPOTDPOUJOVFUPTIPXHSPXUIXJUI
Kinnevik's holdings
the expansion of the smartphone market in particular. In Sweden, the roll out of the new 2G and 4G network in the country accelerated to meet increasing data demand from the customers. In Norway, the integration of Network Norway proceeded ahead of plan.
Operations in the Netherlands reached higher EBITDA levels on increased scale. After a successful pilot project, Tele2 is evaluating the potential of 4G networks as the regulatory and market environments seem favourable for a value driven telecom competitor.
Tele2 Kazakhstan demonstrated solid revenue growth substantially increasing its customer base to 1.4 million.
The Board of Tele2 has decided to recommend an increase in the ordinary dividend of 8% to SEK 6.50 (6.00) per share in respect of the financial year 2011. The Board also decided to recommend an extraordinary dividend of SEK 6.50 (21.00).
Transcom
Transcom is active within outsourcing of Customer Relationship Management (CRM) and Credit Management Services. Today the company is employing more than 22,500 people delivering services from 29 countries.
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (EUR m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 554.1 | 589.1 | 142.8 | 148.7 |
| Operating profit/loss, EBIT | $-28.0$ | -6.5 | 2.0 | $-19.1$ |
| Net profit/loss | $-49.4$ | -80 | $-0.4$ | $-17.0$ |
2011 has been a difficult and turbulent year with disappointing results for Transcom. The target is to reverse the company's negative development and return to growth and improved profitability.
Transcom's revenue in 2011 was EUR 554.1 m, a decrease by 5.9% compared to 2010. Iberia and the North region are performing well despite tough economic and business conditions. North America & Asia Pacific is facing changing delivery demands and volume growth mainly in Asia. West & Central results are disappointing and France is facing a lengthy restructuring process.
Transcom enters 2012 with a stronger balance sheet after the recently completed rights issue. The restructuring program announced in the second quarter of 2011 is still underway. The successful completion of these restructuring actions is an important short-term focus area and Transcom continues to look for areas for improvement in order to achieve a financial uplift. The target is to optimize capacity and that will continue to be a focus area throughout 2012 as the company reviews its global delivery footprint.
Kinnevik's holdings
Media
,JOOFWJLTNFEJBDPNQBOJFTIBWFPQFSBUJPOTJOBUPUBMPG NBSLFUTBOEBDPNCJOFESFBDIPGNJMMJPOEBJMZ57 WJFXFSTJO.5(BOENJMMJPOEBJMZSFBEFSTJO.FUSP
Modern Times Group MTG
.5(JTBOJOUFSOBUJPOBMNFEJBDPNQBOZXJUIUIFTFDPOE MBSHFTUHFPHSBQIJDTQSFBEJOSBEJPBOE57PQFSBUJPOTJO &VSPQF.5(TGSFFBOEQBZ57DIBOOFMTSFBDINPSFUIBO NJMMJPOQFPQMFJODPVOUSJFT
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (SEK m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 13 473 | 13 101 | 3 711 | 3 618 |
| Operating profit/loss, EBIT | -637 | 2 355 | -2 517 | 746 |
| Net profit/loss | -1 289 | 3 541 | -2 564 | 2 359 |
"MMGPVSPG.5(TCSPBEDBTUJOHCVTJOFTTFTSFQPSUFE HSPXJOHSFWFOVFTJOUIFRVBSUFSBOEGPSUIFGVMMZFBS
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4BMFTGPSUIF4DBOEJOBWJBOGSFF57PQFSBUJPOTXFSFVQ ZFBSPOZFBSBTUIFBEWFSUJTJOHNBSLFUTDPOUJOVFEUPHSPX .5(TWJFXFSSBUJOHTJTTVFTBSFCFJOHBEESFTTFE
BOEUIF TQSJOHTDIFEVMFTBSFOPXCFJOHMBVODIFE5IF/PSEJD QBZ57TVCTDSJCFSCBTFDPOUJOVFTUPHSPXBOEUIF7JBQMBZ POMJOFTFSWJDFJTEFWFMPQJOHBDDPSEJOHUPQMBO
5IFFNFSHJOHNBSLFUGSFF57PQFSBUJPOTIBWFUBLFO NBSLFUTIBSFBOEPVUQFSGPSNFEJOBEWFSUJTJOHNBSLFUTUIBU BSFTUJMMMBHHJOHUIFSFDPWFSZJOXFTUFSO&VSPQF
XIJMTUUIF FNFSHJOHNBSLFUQBZ57PQFSBUJPOTBSFSFQPSUJOHDPOUJ-OVFETUSPOHTVCTDSJCFSJOUBLF.5(TCVTJOFTTFTIBWFTPNF PGUIFIJHIFTUNBSHJOTJOUIF&VSPQFBOCSPBEDBTUJOHJOEV-TUSZEFTQJUFUIFGBDUUIBUUIFDPNQBOZDPOUJOVFTUPJOWFTU JOQSPHSBNNJOHDPOUFOU
OFXUFDIOPMPHJFTBOETVCTDSJCFS BDRVJTJUJPO
5IFGPVSUIRVBSUFSSFTVMUTXFSFJNQBDUFECZBOVNCFS PGOPOSFDVSSJOHBOEQSJNBSJMZOPODBTIJUFNTGPMMPXJOH ZFBSFOEJNQBJSNFOUUFTUT
CVUUIFVOEFSMZJOHQSPmUBCJMJUZ BOEDBTInPXTSFNBJOIFBMUIZBOE.5(DPOUJOVFTUPFY-QMPSFOFXHSPXUIPQQPSUVOJUJFT
5IF#PBSEPG%JSFDUPSTXJMMQSPQPTFUPUIF"OOVBM (FOFSBM.FFUJOHPGTIBSFIPMEFSTBOJODSFBTFEPSEJOBSZEJ-WJEFOEPG4&, QFSTIBSF5IF#PBSEPG%JSFDUPST IBTBEPQUFEBEJWJEFOEQPMJDZUPEJTUSJCVUFBNJOJNVNPG PGFBDIZFBSTSFDVSSJOHOFUQSPmUUPTIBSFIPMEFSTJO UIFGPSNPGBOBOOVBMPSEJOBSZEJWJEFOE
Metro
.FUSPJTUIFXPSMETMBSHFTUJOUFSOBUJPOBMEBJMZOFXTQBQFS .FUSPJTQVCMJTIFEJOPWFSNBKPSDJUJFTJODPVOUSJFT BDSPTT&VSPQF
/PSUI4PVUI"NFSJDBBOE"TJB.FUSP BUUSBDUTBOBVEJFODFPGNJMMJPOEBJMZSFBEFST
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (EUR m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 197 | 175 | 58 | 56 |
| Operating profit, EBIT | 19.4 | 11.7 | 14.6 | 7.5 |
| Net result | 4.7 | 2.9 | 11.4 | 5.7 |
Information in table above refer to continuing operations.
'PS.FUSP
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%FONBSL
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NBSLFUDPOEJUJPOTBSFUPVHIXJUIUIFJODSFBTFE DPNQFUJUJPOCVU.FUSPIBTQFSGPSNFESFMBUJWFMZXFMM
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.FUSPIBTMBVODIFEJO\$PMPNCJB
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*O'FCSVBSZ
,JOOFWJLBOOPVODFEBSFDPNNFOEFE QVCMJDBMMDBTIPGGFSUPUIFPXOFSTPGTIBSFT
XBSSBOUTBOE EFCFOUVSFTJO.FUSP5IFPGGFSWBMVFT.FUSPBUBQQSPYJNB-UFMZ4&,
NBOEUIFBDDFQUBODFQFSJPEJTFYQFDUFEUP DPNNFODFPO'FCSVBSZBOEFOEPO.BSDI TFF QBHFGPSGVSUIFSJOGPSNBUJPO
Kinnevik's holdings
| Investment (SEK m) | | | | | |
| FBITDAIJDI UIFDPNQBOZJOWFTUFENPSFJODPNNFSDJBMBDUJWJUZ
NBSHJOT TUJMMFYDFFEFE'PDVTJOUIFGPVSUIRVBSUFSSFNBJOFE POHSPXJOHSFWFOVFTUISPVHIJOOPWBUJWFQSPEVDUTJOUIF *OGPSNBUJPO
&OUFSUBJONFOU
4PMVUJPOT
BOE.'4DBUFHPSJFT *OQBSUJDVMBS
NPCJMFEBUBHSFXJO2BOEUIF *OGPSNBUJPO
4PMVUJPOTBOE.'4DBUFHPSJFTDPNCJOFEOPX DPOUSJCVUFJOFYDFTTPGPGSFDVSSJOHSFWFOVFT
*O-BUJO"NFSJDB
7BMVF"EEFE4FSWJDFTOPXBNPVOUT UPNPSFUIBOPOFUIJSEPGSFWFOVFT0WFSUIFUISFFZFBST TJODFJUTBDRVJTJUJPO
UIFDBCMFCVTJOFTTJO\$FOUSBM"NFSJDB IBTEFMJWFSFEBDPNQPVOEFEBOOVBMHSPXUISBUFPGJO SFWFOVFXIJMFNBJOUBJOJOHBIFBMUIZ&#*5%"NBSHJO
*O"GSJDB
UPQMJOFHSPXUIJOMPDBMDVSSFODZSFBDIFE JO2
BOJNQSPWFNFOUWFSTVTUIFHSPXUISBUFJO
2.JMMJDPNFYQFDUTNFBTVSFTJNQMFNFOUFEJO(IBOB BOE4FOFHBMUPSFTVMUJOJNQSPWFEQFSGPSNBODFJO *O3XBOEB
UXPZFBSTTJODFMBVODI
UIFDPVOUSZUVSOFE &#*5%"QPTJUJWFJO%FDFNCFS
BTDSJUJDBMNBTTXBTSFBDIFE XJUIPOFUIJSEPGUIFNBSLFUVTJOH.JMMJDPNTOFUXPSL
5IF#PBSEPG%JSFDUPSTXJMMQSPQPTFUPUIF.BZ "(.
UIFQBZNFOUPGB64%TIBSFPSEJOBSZEJWJEFOE BOJODSFBTFPGWFSTVTMBTUZFBS'PSUIFZFBS
B TIBSFCVZCBDLQSPHSBNPGVQUP64%NIBTCFFO BQQSPWFECZUIF#PBSE
Tele2
5FMFPGGFSTQSPEVDUTBOETFSWJDFTXJUIJOmYFEBOENPCJMF UFMFQIPOZ
CSPBECBOE
DPNQVUFSOFUXPSLTBOEDBCMF57 XJUIBHFPHSBQIJDBMGPDVTPO3VTTJB
&BTUFSO&VSPQFBOE UIF/PSEJDT
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (SEK m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 40 750 | 40 164 | 10 839 | 10 109 |
| EBITDA | 10 852 | 10 284 | 2 791 | 2 488 |
| Operating profit, EBIT | 6 968 | 7 088 | 1 640 | 1 356 |
| Net profit | 4 904 | 6 481 | 1 311 | 1 099 |
| Number of subscribers (million) | 34.2 | 30.9 |
5IFGPVSUIRVBSUFSDPOmSNFEUIFNPNFOUVNPG 5FMFTHSPXUIXJUIUIFDPNQMFUJPOPGBDRVJTJUJPOTJO/PS-XBZ /FUXPSL/PSXBZ BOEJO"VTUSJB 4JMWFS4FSWFS UIF MBVODIPGNPCJMFTFSWJDFTJOPVUPGSFHJPOTJO,B[BL-ITUBOBOEUIFBDRVJTJUJPOPGTQFDUSVNJO4XFEFO
&TUPOJB -JUIVBOJB
-BUWJBBOE,B[BLITUBOUPDPOUSJCVUFUP5FMFT EBUBTUSBUFHJFT
5FMFXPOOFXSFHJPOTJO3VTTJB
CSJOHJOHUIFUPUBMUP 5FMF3VTTJBBEEFENPSFUIBONJMMJPODVTUPNFST JOPVUPGNJMMJPOGPSUIFHSPVQ"TUIF3VTTJBO NBSLFUNBUVSFT
5FMFJOUFOETUPTIJGUUIFJSGPDVTGSPN WPMVNFUPWBMVF
5FMFT/PSEJDPQFSBUJPOTDPOUJOVFUPTIPXHSPXUIXJUI
Kinnevik's holdings
the expansion of the smartphone market in particular. In Sweden, the roll out of the new 2G and 4G network in the country accelerated to meet increasing data demand from the customers. In Norway, the integration of Network Norway proceeded ahead of plan.
Operations in the Netherlands reached higher EBITDA levels on increased scale. After a successful pilot project, Tele2 is evaluating the potential of 4G networks as the regulatory and market environments seem favourable for a value driven telecom competitor.
Tele2 Kazakhstan demonstrated solid revenue growth substantially increasing its customer base to 1.4 million.
The Board of Tele2 has decided to recommend an increase in the ordinary dividend of 8% to SEK 6.50 (6.00) per share in respect of the financial year 2011. The Board also decided to recommend an extraordinary dividend of SEK 6.50 (21.00).
Transcom
Transcom is active within outsourcing of Customer Relationship Management (CRM) and Credit Management Services. Today the company is employing more than 22,500 people delivering services from 29 countries.
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (EUR m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 554.1 | 589.1 | 142.8 | 148.7 |
| Operating profit/loss, EBIT | $-28.0$ | -6.5 | 2.0 | $-19.1$ |
| Net profit/loss | $-49.4$ | -80 | $-0.4$ | $-17.0$ |
2011 has been a difficult and turbulent year with disappointing results for Transcom. The target is to reverse the company's negative development and return to growth and improved profitability.
Transcom's revenue in 2011 was EUR 554.1 m, a decrease by 5.9% compared to 2010. Iberia and the North region are performing well despite tough economic and business conditions. North America & Asia Pacific is facing changing delivery demands and volume growth mainly in Asia. West & Central results are disappointing and France is facing a lengthy restructuring process.
Transcom enters 2012 with a stronger balance sheet after the recently completed rights issue. The restructuring program announced in the second quarter of 2011 is still underway. The successful completion of these restructuring actions is an important short-term focus area and Transcom continues to look for areas for improvement in order to achieve a financial uplift. The target is to optimize capacity and that will continue to be a focus area throughout 2012 as the company reviews its global delivery footprint.
Kinnevik's holdings
Media
,JOOFWJLTNFEJBDPNQBOJFTIBWFPQFSBUJPOTJOBUPUBMPG NBSLFUTBOEBDPNCJOFESFBDIPGNJMMJPOEBJMZ57 WJFXFSTJO.5(BOENJMMJPOEBJMZSFBEFSTJO.FUSP
Modern Times Group MTG
.5(JTBOJOUFSOBUJPOBMNFEJBDPNQBOZXJUIUIFTFDPOE MBSHFTUHFPHSBQIJDTQSFBEJOSBEJPBOE57PQFSBUJPOTJO &VSPQF.5(TGSFFBOEQBZ57DIBOOFMTSFBDINPSFUIBO NJMMJPOQFPQMFJODPVOUSJFT
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (SEK m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 13 473 | 13 101 | 3 711 | 3 618 |
| Operating profit/loss, EBIT | -637 | 2 355 | -2 517 | 746 |
| Net profit/loss | -1 289 | 3 541 | -2 564 | 2 359 |
"MMGPVSPG.5(TCSPBEDBTUJOHCVTJOFTTFTSFQPSUFE HSPXJOHSFWFOVFTJOUIFRVBSUFSBOEGPSUIFGVMMZFBS
XJUI SFDPSETBMFTGPSCPUIQFSJPET
4BMFTGPSUIF4DBOEJOBWJBOGSFF57PQFSBUJPOTXFSFVQ ZFBSPOZFBSBTUIFBEWFSUJTJOHNBSLFUTDPOUJOVFEUPHSPX .5(TWJFXFSSBUJOHTJTTVFTBSFCFJOHBEESFTTFE
BOEUIF TQSJOHTDIFEVMFTBSFOPXCFJOHMBVODIFE5IF/PSEJD QBZ57TVCTDSJCFSCBTFDPOUJOVFTUPHSPXBOEUIF7JBQMBZ POMJOFTFSWJDFJTEFWFMPQJOHBDDPSEJOHUPQMBO
5IFFNFSHJOHNBSLFUGSFF57PQFSBUJPOTIBWFUBLFO NBSLFUTIBSFBOEPVUQFSGPSNFEJOBEWFSUJTJOHNBSLFUTUIBU BSFTUJMMMBHHJOHUIFSFDPWFSZJOXFTUFSO&VSPQF
XIJMTUUIF FNFSHJOHNBSLFUQBZ57PQFSBUJPOTBSFSFQPSUJOHDPOUJ-OVFETUSPOHTVCTDSJCFSJOUBLF.5(TCVTJOFTTFTIBWFTPNF PGUIFIJHIFTUNBSHJOTJOUIF&VSPQFBOCSPBEDBTUJOHJOEV-TUSZEFTQJUFUIFGBDUUIBUUIFDPNQBOZDPOUJOVFTUPJOWFTU JOQSPHSBNNJOHDPOUFOU
OFXUFDIOPMPHJFTBOETVCTDSJCFS BDRVJTJUJPO
5IFGPVSUIRVBSUFSSFTVMUTXFSFJNQBDUFECZBOVNCFS PGOPOSFDVSSJOHBOEQSJNBSJMZOPODBTIJUFNTGPMMPXJOH ZFBSFOEJNQBJSNFOUUFTUT
CVUUIFVOEFSMZJOHQSPmUBCJMJUZ BOEDBTInPXTSFNBJOIFBMUIZBOE.5(DPOUJOVFTUPFY-QMPSFOFXHSPXUIPQQPSUVOJUJFT
5IF#PBSEPG%JSFDUPSTXJMMQSPQPTFUPUIF"OOVBM (FOFSBM.FFUJOHPGTIBSFIPMEFSTBOJODSFBTFEPSEJOBSZEJ-WJEFOEPG4&, QFSTIBSF5IF#PBSEPG%JSFDUPST IBTBEPQUFEBEJWJEFOEQPMJDZUPEJTUSJCVUFBNJOJNVNPG PGFBDIZFBSTSFDVSSJOHOFUQSPmUUPTIBSFIPMEFSTJO UIFGPSNPGBOBOOVBMPSEJOBSZEJWJEFOE
Metro
.FUSPJTUIFXPSMETMBSHFTUJOUFSOBUJPOBMEBJMZOFXTQBQFS .FUSPJTQVCMJTIFEJOPWFSNBKPSDJUJFTJODPVOUSJFT BDSPTT&VSPQF
/PSUI4PVUI"NFSJDBBOE"TJB.FUSP BUUSBDUTBOBVEJFODFPGNJMMJPOEBJMZSFBEFST
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (EUR m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 197 | 175 | 58 | 56 |
| Operating profit, EBIT | 19.4 | 11.7 | 14.6 | 7.5 |
| Net result | 4.7 | 2.9 | 11.4 | 5.7 |
Information in table above refer to continuing operations.
'PS.FUSP
UIFMBUUFSIBMGPGXBTJNQBDUFECZUIF HMPCBMFDPOPNJDDSJTJT
CVUJOTQJUFPGUIFJNQBDU
GVMMZFBS SFTVMUTXFSFTPMJE4XFEFO
%FONBSL
3VTTJBBOE.FYJDP IBEJNQSPWFNFOUJOSFTVMUTCBTFEPOCFUUFSQSJDJOH)PM-MBOEJTCFJOHDMPTFMZNPOJUPSFEBTUIBUNBSLFUJTFYQF-SJFODJOHBEFDMJOFJOBETQFOEPOOFXTQBQFST*O)POH ,POH
NBSLFUDPOEJUJPOTBSFUPVHIXJUIUIFJODSFBTFE DPNQFUJUJPOCVU.FUSPIBTQFSGPSNFESFMBUJWFMZXFMM
5PDBQJUBMJ[FPOUIFHSPXJOHBEWFSUJTJOHNBSLFUJO-BUJO "NFSJDB
.FUSPIBTMBVODIFEJO\$PMPNCJB
(VBUFNBMBBOE 1FSV6TJOHGVOETGSPNUIFEJWFTUNFOUPG&OHMJTI\$BOBEB .FUSPBDRVJSFEBGVSUIFSTUBLFJO.FUSP4U1FUFSTCVSHBO PQFSBUJPOUIBUIBTUIFCFTU&#*5NBSHJOJOUIFHSPVQ
*O'FCSVBSZ
,JOOFWJLBOOPVODFEBSFDPNNFOEFE QVCMJDBMMDBTIPGGFSUPUIFPXOFSTPGTIBSFT
XBSSBOUTBOE EFCFOUVSFTJO.FUSP5IFPGGFSWBMVFT.FUSPBUBQQSPYJNB-UFMZ4&,
NBOEUIFBDDFQUBODFQFSJPEJTFYQFDUFEUP DPNNFODFPO'FCSVBSZBOEFOEPO.BSDI TFF QBHFGPSGVSUIFSJOGPSNBUJPO
Kinnevik's holdings
| Investment (SEK m) | | 1515 | 1528 | 276 | 269 |
| Change in working capital | $-437$ | 113 | 7 | 91 |
| Cash flow from operations | 832 | 1 3 1 4 | 239 | 294 |
| Investments in tangible fixed assets | $-687$ | $-604$ | $-292$ | $-233$ |
| | | | | |
| Production, thousand tons | 1 0 6 1 | 1019 | 247 | 243 |
| Deliveries, thousand tons | 1 0 0 2 | 1 0 2 1 | 238 | 241 |
Korsnäs Industrial's sales volume divided per product January-December 2011
Numbers in brackets refer to January-December 2010.
Operating profit for the fourth quarter of the year amounted to SEK 123 m, compared with SEK 116 m in the year-earlier period. Operating profit for the fourth quarter
of 2011 includes insurance compensation of SEK 45 m, pertaining to damage to a soda recovery boiler in Frövi, which caused shorter production shutdowns in 2009 and 2010. The results for the fourth quarter were also positively impacted by lower energy costs, as well as higher sales prices. Higher prices for wood and chemicals were the primary contributing factors that had a negative impact on results, compared with the year-earlier period.
Korsnäs' operating profit for the full-year 2011 amounted to SEK 907 m, compared with SEK 926 million in 2010. Operating profit for the current year was adversely impacted by a breakdown of a turbine in Gävle (included below in energy costs). The breakdown is estimated to have caused additional costs of SEK 40 m. Operating profit was also negatively impacted by higher costs for wood and chemicals that were not fully offset by higher sales prices. Despite the negative effects from the breakdown of the turbine, energy costs were lower than the preceding year mainly due to energy investments in Gävle and lower electricity prices. The results for the second quarter of 2010 included strike remuneration of SEK 84 m from the Confederation of Swedish Enterprise as compensation for direct costs resulting from an industrial dispute.
The explanatory items are presented in the table below.
| Explanation items in changes in EBIT (SEK m) | Jan-Dec | Oct-Dec |
|---|---|---|
| FBIT 20104%TIBSFPSEJOBSZEJWJEFOE BOJODSFBTFPGWFSTVTMBTUZFBS'PSUIFZFBS | ||
| B TIBSFCVZCBDLQSPHSBNPGVQUP64%NIBTCFFO BQQSPWFECZUIF#PBSE |
Tele2
5FMFPGGFSTQSPEVDUTBOETFSWJDFTXJUIJOmYFEBOENPCJMF UFMFQIPOZ
CSPBECBOE
DPNQVUFSOFUXPSLTBOEDBCMF57 XJUIBHFPHSBQIJDBMGPDVTPO3VTTJB
&BTUFSO&VSPQFBOE UIF/PSEJDT
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (SEK m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 40 750 | 40 164 | 10 839 | 10 109 |
| EBITDA | 10 852 | 10 284 | 2 791 | 2 488 |
| Operating profit, EBIT | 6 968 | 7 088 | 1 640 | 1 356 |
| Net profit | 4 904 | 6 481 | 1 311 | 1 099 |
| Number of subscribers (million) | 34.2 | 30.9 |
5IFGPVSUIRVBSUFSDPOmSNFEUIFNPNFOUVNPG 5FMFTHSPXUIXJUIUIFDPNQMFUJPOPGBDRVJTJUJPOTJO/PS-XBZ /FUXPSL/PSXBZ BOEJO"VTUSJB 4JMWFS4FSWFS UIF MBVODIPGNPCJMFTFSWJDFTJOPVUPGSFHJPOTJO,B[BL-ITUBOBOEUIFBDRVJTJUJPOPGTQFDUSVNJO4XFEFO
&TUPOJB -JUIVBOJB
-BUWJBBOE,B[BLITUBOUPDPOUSJCVUFUP5FMFT EBUBTUSBUFHJFT
5FMFXPOOFXSFHJPOTJO3VTTJB
CSJOHJOHUIFUPUBMUP 5FMF3VTTJBBEEFENPSFUIBONJMMJPODVTUPNFST JOPVUPGNJMMJPOGPSUIFHSPVQ"TUIF3VTTJBO NBSLFUNBUVSFT
5FMFJOUFOETUPTIJGUUIFJSGPDVTGSPN WPMVNFUPWBMVF
5FMFT/PSEJDPQFSBUJPOTDPOUJOVFUPTIPXHSPXUIXJUI
Kinnevik's holdings
the expansion of the smartphone market in particular. In Sweden, the roll out of the new 2G and 4G network in the country accelerated to meet increasing data demand from the customers. In Norway, the integration of Network Norway proceeded ahead of plan.
Operations in the Netherlands reached higher EBITDA levels on increased scale. After a successful pilot project, Tele2 is evaluating the potential of 4G networks as the regulatory and market environments seem favourable for a value driven telecom competitor.
Tele2 Kazakhstan demonstrated solid revenue growth substantially increasing its customer base to 1.4 million.
The Board of Tele2 has decided to recommend an increase in the ordinary dividend of 8% to SEK 6.50 (6.00) per share in respect of the financial year 2011. The Board also decided to recommend an extraordinary dividend of SEK 6.50 (21.00).
Transcom
Transcom is active within outsourcing of Customer Relationship Management (CRM) and Credit Management Services. Today the company is employing more than 22,500 people delivering services from 29 countries.
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (EUR m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 554.1 | 589.1 | 142.8 | 148.7 |
| Operating profit/loss, EBIT | $-28.0$ | -6.5 | 2.0 | $-19.1$ |
| Net profit/loss | $-49.4$ | -80 | $-0.4$ | $-17.0$ |
2011 has been a difficult and turbulent year with disappointing results for Transcom. The target is to reverse the company's negative development and return to growth and improved profitability.
Transcom's revenue in 2011 was EUR 554.1 m, a decrease by 5.9% compared to 2010. Iberia and the North region are performing well despite tough economic and business conditions. North America & Asia Pacific is facing changing delivery demands and volume growth mainly in Asia. West & Central results are disappointing and France is facing a lengthy restructuring process.
Transcom enters 2012 with a stronger balance sheet after the recently completed rights issue. The restructuring program announced in the second quarter of 2011 is still underway. The successful completion of these restructuring actions is an important short-term focus area and Transcom continues to look for areas for improvement in order to achieve a financial uplift. The target is to optimize capacity and that will continue to be a focus area throughout 2012 as the company reviews its global delivery footprint.
Kinnevik's holdings
Media
,JOOFWJLTNFEJBDPNQBOJFTIBWFPQFSBUJPOTJOBUPUBMPG NBSLFUTBOEBDPNCJOFESFBDIPGNJMMJPOEBJMZ57 WJFXFSTJO.5(BOENJMMJPOEBJMZSFBEFSTJO.FUSP
Modern Times Group MTG
.5(JTBOJOUFSOBUJPOBMNFEJBDPNQBOZXJUIUIFTFDPOE MBSHFTUHFPHSBQIJDTQSFBEJOSBEJPBOE57PQFSBUJPOTJO &VSPQF.5(TGSFFBOEQBZ57DIBOOFMTSFBDINPSFUIBO NJMMJPOQFPQMFJODPVOUSJFT
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (SEK m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 13 473 | 13 101 | 3 711 | 3 618 |
| Operating profit/loss, EBIT | -637 | 2 355 | -2 517 | 746 |
| Net profit/loss | -1 289 | 3 541 | -2 564 | 2 359 |
"MMGPVSPG.5(TCSPBEDBTUJOHCVTJOFTTFTSFQPSUFE HSPXJOHSFWFOVFTJOUIFRVBSUFSBOEGPSUIFGVMMZFBS
XJUI SFDPSETBMFTGPSCPUIQFSJPET
4BMFTGPSUIF4DBOEJOBWJBOGSFF57PQFSBUJPOTXFSFVQ ZFBSPOZFBSBTUIFBEWFSUJTJOHNBSLFUTDPOUJOVFEUPHSPX .5(TWJFXFSSBUJOHTJTTVFTBSFCFJOHBEESFTTFE
BOEUIF TQSJOHTDIFEVMFTBSFOPXCFJOHMBVODIFE5IF/PSEJD QBZ57TVCTDSJCFSCBTFDPOUJOVFTUPHSPXBOEUIF7JBQMBZ POMJOFTFSWJDFJTEFWFMPQJOHBDDPSEJOHUPQMBO
5IFFNFSHJOHNBSLFUGSFF57PQFSBUJPOTIBWFUBLFO NBSLFUTIBSFBOEPVUQFSGPSNFEJOBEWFSUJTJOHNBSLFUTUIBU BSFTUJMMMBHHJOHUIFSFDPWFSZJOXFTUFSO&VSPQF
XIJMTUUIF FNFSHJOHNBSLFUQBZ57PQFSBUJPOTBSFSFQPSUJOHDPOUJ-OVFETUSPOHTVCTDSJCFSJOUBLF.5(TCVTJOFTTFTIBWFTPNF PGUIFIJHIFTUNBSHJOTJOUIF&VSPQFBOCSPBEDBTUJOHJOEV-TUSZEFTQJUFUIFGBDUUIBUUIFDPNQBOZDPOUJOVFTUPJOWFTU JOQSPHSBNNJOHDPOUFOU
OFXUFDIOPMPHJFTBOETVCTDSJCFS BDRVJTJUJPO
5IFGPVSUIRVBSUFSSFTVMUTXFSFJNQBDUFECZBOVNCFS PGOPOSFDVSSJOHBOEQSJNBSJMZOPODBTIJUFNTGPMMPXJOH ZFBSFOEJNQBJSNFOUUFTUT
CVUUIFVOEFSMZJOHQSPmUBCJMJUZ BOEDBTInPXTSFNBJOIFBMUIZBOE.5(DPOUJOVFTUPFY-QMPSFOFXHSPXUIPQQPSUVOJUJFT
5IF#PBSEPG%JSFDUPSTXJMMQSPQPTFUPUIF"OOVBM (FOFSBM.FFUJOHPGTIBSFIPMEFSTBOJODSFBTFEPSEJOBSZEJ-WJEFOEPG4&, QFSTIBSF5IF#PBSEPG%JSFDUPST IBTBEPQUFEBEJWJEFOEQPMJDZUPEJTUSJCVUFBNJOJNVNPG PGFBDIZFBSTSFDVSSJOHOFUQSPmUUPTIBSFIPMEFSTJO UIFGPSNPGBOBOOVBMPSEJOBSZEJWJEFOE
Metro
.FUSPJTUIFXPSMETMBSHFTUJOUFSOBUJPOBMEBJMZOFXTQBQFS .FUSPJTQVCMJTIFEJOPWFSNBKPSDJUJFTJODPVOUSJFT BDSPTT&VSPQF
/PSUI4PVUI"NFSJDBBOE"TJB.FUSP BUUSBDUTBOBVEJFODFPGNJMMJPOEBJMZSFBEFST
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (EUR m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 197 | 175 | 58 | 56 |
| Operating profit, EBIT | 19.4 | 11.7 | 14.6 | 7.5 |
| Net result | 4.7 | 2.9 | 11.4 | 5.7 |
Information in table above refer to continuing operations.
'PS.FUSP
UIFMBUUFSIBMGPGXBTJNQBDUFECZUIF HMPCBMFDPOPNJDDSJTJT
CVUJOTQJUFPGUIFJNQBDU
GVMMZFBS SFTVMUTXFSFTPMJE4XFEFO
%FONBSL
3VTTJBBOE.FYJDP IBEJNQSPWFNFOUJOSFTVMUTCBTFEPOCFUUFSQSJDJOH)PM-MBOEJTCFJOHDMPTFMZNPOJUPSFEBTUIBUNBSLFUJTFYQF-SJFODJOHBEFDMJOFJOBETQFOEPOOFXTQBQFST*O)POH ,POH
NBSLFUDPOEJUJPOTBSFUPVHIXJUIUIFJODSFBTFE DPNQFUJUJPOCVU.FUSPIBTQFSGPSNFESFMBUJWFMZXFMM
5PDBQJUBMJ[FPOUIFHSPXJOHBEWFSUJTJOHNBSLFUJO-BUJO "NFSJDB
.FUSPIBTMBVODIFEJO\$PMPNCJB
(VBUFNBMBBOE 1FSV6TJOHGVOETGSPNUIFEJWFTUNFOUPG&OHMJTI\$BOBEB .FUSPBDRVJSFEBGVSUIFSTUBLFJO.FUSP4U1FUFSTCVSHBO PQFSBUJPOUIBUIBTUIFCFTU&#*5NBSHJOJOUIFHSPVQ
*O'FCSVBSZ
,JOOFWJLBOOPVODFEBSFDPNNFOEFE QVCMJDBMMDBTIPGGFSUPUIFPXOFSTPGTIBSFT
XBSSBOUTBOE EFCFOUVSFTJO.FUSP5IFPGGFSWBMVFT.FUSPBUBQQSPYJNB-UFMZ4&,
NBOEUIFBDDFQUBODFQFSJPEJTFYQFDUFEUP DPNNFODFPO'FCSVBSZBOEFOEPO.BSDI TFF QBHFGPSGVSUIFSJOGPSNBUJPO
Kinnevik's holdings
| Investment (SEK m) | | 926 | 116 |
| Delivery and production volumes and changed
product mix | 76 | 9 |
| Sales prices including currency effects | 142 | 19 |
| Cost changes for energy | 95 | 48 |
| Cost changes for pulpwood and external pulp | $-182$ | -58 |
| Cost changes for chemicals | -73 | -36 |
| Strike compensation 2010 | -84 | |
| Insurance compensation | 45 | 45 |
| Change in fixed costs | -63 | $-29$ |
| Other | 25 | 9 |
| EBIT 2011 | Jan-Dec | | Oct-Dec | |
|---------------------------------|---------|--------|---------|--------|
| Key data (SEK m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 40 750 | 40 164 | 10 839 | 10 109 |
| EBITDA | 10 852 | 10 284 | 2 791 | 2 488 |
| Operating profit, EBIT | 6 968 | 7 088 | 1 640 | 1 356 |
| Net profit | 4 904 | 6 481 | 1 311 | 1 099 |
| Number of subscribers (million) | 34.2 | 30.9 | | |
5IFGPVSUIRVBSUFSDPOmSNFEUIFNPNFOUVNPG 5FMFTHSPXUIXJUIUIFDPNQMFUJPOPGBDRVJTJUJPOTJO/PS-XBZ /FUXPSL/PSXBZ BOEJO"VTUSJB 4JMWFS4FSWFS UIF MBVODIPGNPCJMFTFSWJDFTJOPVUPGSFHJPOTJO,B[BL-ITUBOBOEUIFBDRVJTJUJPOPGTQFDUSVNJO4XFEFO
&TUPOJB -JUIVBOJB
-BUWJBBOE,B[BLITUBOUPDPOUSJCVUFUP5FMFT EBUBTUSBUFHJFT
5FMFXPOOFXSFHJPOTJO3VTTJB
CSJOHJOHUIFUPUBMUP 5FMF3VTTJBBEEFENPSFUIBONJMMJPODVTUPNFST JOPVUPGNJMMJPOGPSUIFHSPVQ"TUIF3VTTJBO NBSLFUNBUVSFT
5FMFJOUFOETUPTIJGUUIFJSGPDVTGSPN WPMVNFUPWBMVF
5FMFT/PSEJDPQFSBUJPOTDPOUJOVFUPTIPXHSPXUIXJUI
Kinnevik's holdings
the expansion of the smartphone market in particular. In Sweden, the roll out of the new 2G and 4G network in the country accelerated to meet increasing data demand from the customers. In Norway, the integration of Network Norway proceeded ahead of plan.
Operations in the Netherlands reached higher EBITDA levels on increased scale. After a successful pilot project, Tele2 is evaluating the potential of 4G networks as the regulatory and market environments seem favourable for a value driven telecom competitor.
Tele2 Kazakhstan demonstrated solid revenue growth substantially increasing its customer base to 1.4 million.
The Board of Tele2 has decided to recommend an increase in the ordinary dividend of 8% to SEK 6.50 (6.00) per share in respect of the financial year 2011. The Board also decided to recommend an extraordinary dividend of SEK 6.50 (21.00).
Transcom
Transcom is active within outsourcing of Customer Relationship Management (CRM) and Credit Management Services. Today the company is employing more than 22,500 people delivering services from 29 countries.
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (EUR m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 554.1 | 589.1 | 142.8 | 148.7 |
| Operating profit/loss, EBIT | $-28.0$ | -6.5 | 2.0 | $-19.1$ |
| Net profit/loss | $-49.4$ | -80 | $-0.4$ | $-17.0$ |
2011 has been a difficult and turbulent year with disappointing results for Transcom. The target is to reverse the company's negative development and return to growth and improved profitability.
Transcom's revenue in 2011 was EUR 554.1 m, a decrease by 5.9% compared to 2010. Iberia and the North region are performing well despite tough economic and business conditions. North America & Asia Pacific is facing changing delivery demands and volume growth mainly in Asia. West & Central results are disappointing and France is facing a lengthy restructuring process.
Transcom enters 2012 with a stronger balance sheet after the recently completed rights issue. The restructuring program announced in the second quarter of 2011 is still underway. The successful completion of these restructuring actions is an important short-term focus area and Transcom continues to look for areas for improvement in order to achieve a financial uplift. The target is to optimize capacity and that will continue to be a focus area throughout 2012 as the company reviews its global delivery footprint.
Kinnevik's holdings
Media
,JOOFWJLTNFEJBDPNQBOJFTIBWFPQFSBUJPOTJOBUPUBMPG NBSLFUTBOEBDPNCJOFESFBDIPGNJMMJPOEBJMZ57 WJFXFSTJO.5(BOENJMMJPOEBJMZSFBEFSTJO.FUSP
Modern Times Group MTG
.5(JTBOJOUFSOBUJPOBMNFEJBDPNQBOZXJUIUIFTFDPOE MBSHFTUHFPHSBQIJDTQSFBEJOSBEJPBOE57PQFSBUJPOTJO &VSPQF.5(TGSFFBOEQBZ57DIBOOFMTSFBDINPSFUIBO NJMMJPOQFPQMFJODPVOUSJFT
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (SEK m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 13 473 | 13 101 | 3 711 | 3 618 |
| Operating profit/loss, EBIT | -637 | 2 355 | -2 517 | 746 |
| Net profit/loss | -1 289 | 3 541 | -2 564 | 2 359 |
"MMGPVSPG.5(TCSPBEDBTUJOHCVTJOFTTFTSFQPSUFE HSPXJOHSFWFOVFTJOUIFRVBSUFSBOEGPSUIFGVMMZFBS
XJUI SFDPSETBMFTGPSCPUIQFSJPET
4BMFTGPSUIF4DBOEJOBWJBOGSFF57PQFSBUJPOTXFSFVQ ZFBSPOZFBSBTUIFBEWFSUJTJOHNBSLFUTDPOUJOVFEUPHSPX .5(TWJFXFSSBUJOHTJTTVFTBSFCFJOHBEESFTTFE
BOEUIF TQSJOHTDIFEVMFTBSFOPXCFJOHMBVODIFE5IF/PSEJD QBZ57TVCTDSJCFSCBTFDPOUJOVFTUPHSPXBOEUIF7JBQMBZ POMJOFTFSWJDFJTEFWFMPQJOHBDDPSEJOHUPQMBO
5IFFNFSHJOHNBSLFUGSFF57PQFSBUJPOTIBWFUBLFO NBSLFUTIBSFBOEPVUQFSGPSNFEJOBEWFSUJTJOHNBSLFUTUIBU BSFTUJMMMBHHJOHUIFSFDPWFSZJOXFTUFSO&VSPQF
XIJMTUUIF FNFSHJOHNBSLFUQBZ57PQFSBUJPOTBSFSFQPSUJOHDPOUJ-OVFETUSPOHTVCTDSJCFSJOUBLF.5(TCVTJOFTTFTIBWFTPNF PGUIFIJHIFTUNBSHJOTJOUIF&VSPQFBOCSPBEDBTUJOHJOEV-TUSZEFTQJUFUIFGBDUUIBUUIFDPNQBOZDPOUJOVFTUPJOWFTU JOQSPHSBNNJOHDPOUFOU
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5IFGPVSUIRVBSUFSSFTVMUTXFSFJNQBDUFECZBOVNCFS PGOPOSFDVSSJOHBOEQSJNBSJMZOPODBTIJUFNTGPMMPXJOH ZFBSFOEJNQBJSNFOUUFTUT
CVUUIFVOEFSMZJOHQSPmUBCJMJUZ BOEDBTInPXTSFNBJOIFBMUIZBOE.5(DPOUJOVFTUPFY-QMPSFOFXHSPXUIPQQPSUVOJUJFT
5IF#PBSEPG%JSFDUPSTXJMMQSPQPTFUPUIF"OOVBM (FOFSBM.FFUJOHPGTIBSFIPMEFSTBOJODSFBTFEPSEJOBSZEJ-WJEFOEPG4&, QFSTIBSF5IF#PBSEPG%JSFDUPST IBTBEPQUFEBEJWJEFOEQPMJDZUPEJTUSJCVUFBNJOJNVNPG PGFBDIZFBSTSFDVSSJOHOFUQSPmUUPTIBSFIPMEFSTJO UIFGPSNPGBOBOOVBMPSEJOBSZEJWJEFOE
Metro
.FUSPJTUIFXPSMETMBSHFTUJOUFSOBUJPOBMEBJMZOFXTQBQFS .FUSPJTQVCMJTIFEJOPWFSNBKPSDJUJFTJODPVOUSJFT BDSPTT&VSPQF
/PSUI4PVUI"NFSJDBBOE"TJB.FUSP BUUSBDUTBOBVEJFODFPGNJMMJPOEBJMZSFBEFST
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (EUR m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 197 | 175 | 58 | 56 |
| Operating profit, EBIT | 19.4 | 11.7 | 14.6 | 7.5 |
| Net result | 4.7 | 2.9 | 11.4 | 5.7 |
Information in table above refer to continuing operations.
'PS.FUSP
UIFMBUUFSIBMGPGXBTJNQBDUFECZUIF HMPCBMFDPOPNJDDSJTJT
CVUJOTQJUFPGUIFJNQBDU
GVMMZFBS SFTVMUTXFSFTPMJE4XFEFO
%FONBSL
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*O'FCSVBSZ
,JOOFWJLBOOPVODFEBSFDPNNFOEFE QVCMJDBMMDBTIPGGFSUPUIFPXOFSTPGTIBSFT
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NBOEUIFBDDFQUBODFQFSJPEJTFYQFDUFEUP DPNNFODFPO'FCSVBSZBOEFOEPO.BSDI TFF QBHFGPSGVSUIFSJOGPSNBUJPO
Kinnevik's holdings
| Investment (SEK m) | | 907 | 123 |
Market
From a stable market position in the first quarter, the market was characterized by uncertainty since the second quarter. Caution among customers who reduced their inventories and delayed placing orders due to uncertainty of the direction of the market continued in the fourth quarter. Compared with 2010, which was characterized by strong demand, demand in 2011 was generally lower.
At the beginning of the year, Korsnäs' inventory levels were low and during the second quarter, the Frövi facility experienced some production problems. This means that deliveries in the first six months of 2011 were impacted by a shortage of materials, while deliveries during the second half of the year were affected by uncertainty in the market.
Despite the uncertain market situation, Korsnäs succeeded in increasing delivery volumes of liquid packaging board by 6% for full-year 2011, compared with 2010, due to
Kinnevik's holdings
higher volumes to existing major customers.
Within cartonboard and white top liner, deliveries declined compared with 2010 due to lower demand at the end of the year combined with a reduction of customer inventories. The proportion of coated white top liner increased during the year.
Sales of sack and kraft paper declined marginally compared with 2010. However, sales of white paper, which has been Korsnäs' focus for the past couple of years, rose 5% compared with 2010. Demand for sack and kraft paper also declined during the latter part of the year.
Price increases were implemented from 1 January 2011, in line with agreements with major liquid packaging board customers, and price increases were also implemented in other product areas during the first nine months. Prices remained unchanged during the fourth quarter.
Production
Production for the full-year 2011 amounted to 1,061,000 tons, up 4% compared with 2010.
Production volumes for 2011 were impacted by a number of minor operational problems at the Gävle plant in the fourth quarter, resulting in production loss totaling approximately 15,000 tons (in addition to the production loss due to the maintenance shutdown lasting for 11 days), as well as production problems at the Frövi facility during the second quarter resulting in a production loss of slightly more than 10,000 tons of paper and carton products. During 2010, Korsnäs' production was impacted by production loss of approximately 59,000 tons (of which 21,000 tons in the fourth quarter) due to unscheduled operational shutdowns and an industrial conflict.
As a result of energy investments in Gäyle, energy costs have been reduced significantly compared with 2010. The new evaporation facility that came online in May 2010 has decreased oil consumption well in line with the anticipated savings of 19,000 m3*
Transcom is active within outsourcing of Customer Relationship Management (CRM) and Credit Management Services. Today the company is employing more than 22,500 people delivering services from 29 countries.
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (EUR m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 554.1 | 589.1 | 142.8 | 148.7 |
| Operating profit/loss, EBIT | $-28.0$ | -6.5 | 2.0 | $-19.1$ |
| Net profit/loss | $-49.4$ | -80 | $-0.4$ | $-17.0$ |
2011 has been a difficult and turbulent year with disappointing results for Transcom. The target is to reverse the company's negative development and return to growth and improved profitability.
Transcom's revenue in 2011 was EUR 554.1 m, a decrease by 5.9% compared to 2010. Iberia and the North region are performing well despite tough economic and business conditions. North America & Asia Pacific is facing changing delivery demands and volume growth mainly in Asia. West & Central results are disappointing and France is facing a lengthy restructuring process.
Transcom enters 2012 with a stronger balance sheet after the recently completed rights issue. The restructuring program announced in the second quarter of 2011 is still underway. The successful completion of these restructuring actions is an important short-term focus area and Transcom continues to look for areas for improvement in order to achieve a financial uplift. The target is to optimize capacity and that will continue to be a focus area throughout 2012 as the company reviews its global delivery footprint.
Kinnevik's holdings
Media
,JOOFWJLTNFEJBDPNQBOJFTIBWFPQFSBUJPOTJOBUPUBMPG NBSLFUTBOEBDPNCJOFESFBDIPGNJMMJPOEBJMZ57 WJFXFSTJO.5(BOENJMMJPOEBJMZSFBEFSTJO.FUSP
Modern Times Group MTG
.5(JTBOJOUFSOBUJPOBMNFEJBDPNQBOZXJUIUIFTFDPOE MBSHFTUHFPHSBQIJDTQSFBEJOSBEJPBOE57PQFSBUJPOTJO &VSPQF.5(TGSFFBOEQBZ57DIBOOFMTSFBDINPSFUIBO NJMMJPOQFPQMFJODPVOUSJFT
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (SEK m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 13 473 | 13 101 | 3 711 | 3 618 |
| Operating profit/loss, EBIT | -637 | 2 355 | -2 517 | 746 |
| Net profit/loss | -1 289 | 3 541 | -2 564 | 2 359 |
"MMGPVSPG.5(TCSPBEDBTUJOHCVTJOFTTFTSFQPSUFE HSPXJOHSFWFOVFTJOUIFRVBSUFSBOEGPSUIFGVMMZFBS
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4BMFTGPSUIF4DBOEJOBWJBOGSFF57PQFSBUJPOTXFSFVQ ZFBSPOZFBSBTUIFBEWFSUJTJOHNBSLFUTDPOUJOVFEUPHSPX .5(TWJFXFSSBUJOHTJTTVFTBSFCFJOHBEESFTTFE
BOEUIF TQSJOHTDIFEVMFTBSFOPXCFJOHMBVODIFE5IF/PSEJD QBZ57TVCTDSJCFSCBTFDPOUJOVFTUPHSPXBOEUIF7JBQMBZ POMJOFTFSWJDFJTEFWFMPQJOHBDDPSEJOHUPQMBO
5IFFNFSHJOHNBSLFUGSFF57PQFSBUJPOTIBWFUBLFO NBSLFUTIBSFBOEPVUQFSGPSNFEJOBEWFSUJTJOHNBSLFUTUIBU BSFTUJMMMBHHJOHUIFSFDPWFSZJOXFTUFSO&VSPQF
XIJMTUUIF FNFSHJOHNBSLFUQBZ57PQFSBUJPOTBSFSFQPSUJOHDPOUJ-OVFETUSPOHTVCTDSJCFSJOUBLF.5(TCVTJOFTTFTIBWFTPNF PGUIFIJHIFTUNBSHJOTJOUIF&VSPQFBOCSPBEDBTUJOHJOEV-TUSZEFTQJUFUIFGBDUUIBUUIFDPNQBOZDPOUJOVFTUPJOWFTU JOQSPHSBNNJOHDPOUFOU
OFXUFDIOPMPHJFTBOETVCTDSJCFS BDRVJTJUJPO
5IFGPVSUIRVBSUFSSFTVMUTXFSFJNQBDUFECZBOVNCFS PGOPOSFDVSSJOHBOEQSJNBSJMZOPODBTIJUFNTGPMMPXJOH ZFBSFOEJNQBJSNFOUUFTUT
CVUUIFVOEFSMZJOHQSPmUBCJMJUZ BOEDBTInPXTSFNBJOIFBMUIZBOE.5(DPOUJOVFTUPFY-QMPSFOFXHSPXUIPQQPSUVOJUJFT
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Metro
.FUSPJTUIFXPSMETMBSHFTUJOUFSOBUJPOBMEBJMZOFXTQBQFS .FUSPJTQVCMJTIFEJOPWFSNBKPSDJUJFTJODPVOUSJFT BDSPTT&VSPQF
/PSUI4PVUI"NFSJDBBOE"TJB.FUSP BUUSBDUTBOBVEJFODFPGNJMMJPOEBJMZSFBEFST
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (EUR m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 197 | 175 | 58 | 56 |
| Operating profit, EBIT | 19.4 | 11.7 | 14.6 | 7.5 |
| Net result | 4.7 | 2.9 | 11.4 | 5.7 |
Information in table above refer to continuing operations.
'PS.FUSP
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*O'FCSVBSZ
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NBOEUIFBDDFQUBODFQFSJPEJTFYQFDUFEUP DPNNFODFPO'FCSVBSZBOEFOEPO.BSDI TFF QBHFGPSGVSUIFSJOGPSNBUJPO
Kinnevik's holdings
| Investment (SEK m) | annually. However, a turbine in Gävle broke down in April 2011, resulting in an operational stoppage of the turbine until the end of July. The stoppage is estimated to have resulted in additional costs of approximately SEK 40 m.
Pulpwood prices rose from 1 January 2011 by SEK 10-30/m3fub, depending on the range and catchment area. During the summer, additional price increases of SEK 10-25/m3fub were announced, but which did not have an effect on Korsnäs' purchase prices before a price reduction of up to SEK 15/m3fub from Korsnäs' earlier price level was announced in September. In mid-December, an additional price reduction was implemented of SEK 20/m3fub for coniferous pulpwood and SEK 15-20/m3fub for birch pulpwood. The price changes for pulpwood will impact Korsnäs' operating profit, subject to a lag of approximately three to six months.
Distribution of operating costs January-December 2011
Excluding depreciation, Korsnäs Industrial. Numbers in brackets refer to January-December 2010
Investments and maintenance stoppages
The project pertaining to a new bioenergy facility in Korsnäs' industrial area is progressing in cooperation with Gävle Energi AB's jointly owned company, Bomhus Energi AB. The aim of the bioenergy facility is to assure delivery of eco-friendly electricity and steam to Korsnäs' plant in Gävle from 2013, as well as district heating to Gävle Energi's customers. All main components have been procured within the project's budget framework and construction is proceeding as planned. For Korsnäs, the investment in 50% of the shares and debenture loans in Bomhus will amount to approximately SEK 320 m, of which SEK 115 m was paid during 2010 and SEK 112 m during the 2011.
During the third quarter, a decision was made to invest SEK 270 m in the rebuilding of PM5 in Gävle. The rebuild will affect several parts of the machine and is an assertive quality investment to improve cartonboard quality. The rebuild will be implemented during the scheduled maintenance stoppage in autumn 2012.
Decisions have also been made to install a new wash press and to modify the oxygen phase in Fiber-line 3 in Gävle. The expansion is estimated to increase wood replacement and decrease requirements of bleaching chemicals. The investment totals SEK 95 m, of which SEK 29 m was paid in 2011.
In July, a judgment was handed down to Korsnäs Gävle from the Land and Environmental Court of the Östersund District Court. According to the judgment, Korsnäs must additionally reduce emissions of TOC (Total Organic Carbon, oxygen-consuming substances) from the plant in Gävle. Consequently, Korsnäs must invest approximately SEK 200-300 m in its external purification facility in 2014. Korsnäs has appealed the judgment of the Land and Environmental Court and a review dispensation was granted in November.
The annual maintenance shutdowns at the plants in Gävle and Frövi are described in the table below.
| Implemented and planned | |
|---|---|
| maintenance stoppages | 2012 | 2011 | 2010 |
|---|---|---|---|
| Korsnäs Gävle | Q4: 11 days | Q4: 11 days | $Q2:2$ days Q4: 9 days |
| Korsnäs Frövi | $Q2: 8$ days | $Q2: 8$ days | Q2: 11 days |
Kinnevik's holdings
Telecom & services
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Millicom
.JMMJDPNPGGFSTBGGPSEBCMFBOEFBTJMZBDDFTTJCMFNPCJMF UFMFQIPOZTFSWJDFTJODPVOUSJFTJO-BUJO"NFSJDBBOE "GSJDB
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (USD m) | 2011 | 2010 1) | 2011 | 2010 1) |
| Revenue | 4 530 | 4 018 | 1 177 | 1 069 |
| EBITDA | 2 087 | 1 896 | 536 | 497 |
| Operating profit, EBIT | 1 257 | 1 083 | 333 | 281 |
| Net profit | 925 | 1 620 | 180 | 206 |
| Number of mobile subscribers (million) | 43.1 | 38.6 |
1) Pro forma figures to reflect the full consolidation of Honduras
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*O"GSJDB
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Tele2
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&BTUFSO&VSPQFBOE UIF/PSEJDT
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (SEK m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 40 750 | 40 164 | 10 839 | 10 109 |
| EBITDA | 10 852 | 10 284 | 2 791 | 2 488 |
| Operating profit, EBIT | 6 968 | 7 088 | 1 640 | 1 356 |
| Net profit | 4 904 | 6 481 | 1 311 | 1 099 |
| Number of subscribers (million) | 34.2 | 30.9 |
5IFGPVSUIRVBSUFSDPOmSNFEUIFNPNFOUVNPG 5FMFTHSPXUIXJUIUIFDPNQMFUJPOPGBDRVJTJUJPOTJO/PS-XBZ /FUXPSL/PSXBZ BOEJO"VTUSJB 4JMWFS4FSWFS UIF MBVODIPGNPCJMFTFSWJDFTJOPVUPGSFHJPOTJO,B[BL-ITUBOBOEUIFBDRVJTJUJPOPGTQFDUSVNJO4XFEFO
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Kinnevik's holdings
the expansion of the smartphone market in particular. In Sweden, the roll out of the new 2G and 4G network in the country accelerated to meet increasing data demand from the customers. In Norway, the integration of Network Norway proceeded ahead of plan.
Operations in the Netherlands reached higher EBITDA levels on increased scale. After a successful pilot project, Tele2 is evaluating the potential of 4G networks as the regulatory and market environments seem favourable for a value driven telecom competitor.
Tele2 Kazakhstan demonstrated solid revenue growth substantially increasing its customer base to 1.4 million.
The Board of Tele2 has decided to recommend an increase in the ordinary dividend of 8% to SEK 6.50 (6.00) per share in respect of the financial year 2011. The Board also decided to recommend an extraordinary dividend of SEK 6.50 (21.00).
Transcom
Transcom is active within outsourcing of Customer Relationship Management (CRM) and Credit Management Services. Today the company is employing more than 22,500 people delivering services from 29 countries.
| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (EUR m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 554.1 | 589.1 | 142.8 | 148.7 |
| Operating profit/loss, EBIT | $-28.0$ | -6.5 | 2.0 | $-19.1$ |
| Net profit/loss | $-49.4$ | -80 | $-0.4$ | $-17.0$ |
2011 has been a difficult and turbulent year with disappointing results for Transcom. The target is to reverse the company's negative development and return to growth and improved profitability.
Transcom's revenue in 2011 was EUR 554.1 m, a decrease by 5.9% compared to 2010. Iberia and the North region are performing well despite tough economic and business conditions. North America & Asia Pacific is facing changing delivery demands and volume growth mainly in Asia. West & Central results are disappointing and France is facing a lengthy restructuring process.
Transcom enters 2012 with a stronger balance sheet after the recently completed rights issue. The restructuring program announced in the second quarter of 2011 is still underway. The successful completion of these restructuring actions is an important short-term focus area and Transcom continues to look for areas for improvement in order to achieve a financial uplift. The target is to optimize capacity and that will continue to be a focus area throughout 2012 as the company reviews its global delivery footprint.
Kinnevik's holdings
Media
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Modern Times Group MTG
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| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (SEK m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 13 473 | 13 101 | 3 711 | 3 618 |
| Operating profit/loss, EBIT | -637 | 2 355 | -2 517 | 746 |
| Net profit/loss | -1 289 | 3 541 | -2 564 | 2 359 |
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| Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|
| Key data (EUR m) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 197 | 175 | 58 | 56 |
| Operating profit, EBIT | 19.4 | 11.7 | 14.6 | 7.5 |
| Net result | 4.7 | 2.9 | 11.4 | 5.7 |
Information in table above refer to continuing operations.
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Kinnevik's holdings
| Investment (SEK m) | Ownership | amount | Invested Estimated fair value |
|---|---|---|---|
| Rocket Internet with port- folio companies |
mixed | 3411 | 5434 |
| Groupon, directly owned shares |
8 377 156 | 20 | 1 197 |
| Avito (directly and through Vosvik) |
52% | 285 | 336 |
| CDON | 25.1% | 5171 | 629 |
| Other online investments | mixed | 511 | 204 |
| Total | 4744 | 7 800 |
1) The value of dividend received from MTG when shares distributed and share purchases made thereafter.
Online services are growing strongly and Kinnevik is searching for various types of investments that will benefit from households spending a growing proportion of their time and budget online. The main focus is consumer-oriented services, with proven business concepts. Expansion in consumer-related Internet services is capital-intensive and competition in the market is tough, but at the same time, the growth potential is significant.
In 2011, Kinnevik invested a total of SEK 2,933 m within Online, including SEK 2,673 m in Rocket Internet with portfolio companies, SEK 62 m in Avito and SEK 101 m in CDON.
At the end of the year, investments in Online were valued at a total of SEK 7,800 m. The assessed change in fair value recognized in the consolidated income statement amounted to SEK 2,666 m (640) for the year, of which SEK 1,813 m (209) related to the change of fair value of shares and warrants in Rocket Internet with portfolio companies, SEK 747 m (430) related to the change in fair value of directly owned shares in Groupon, and SEK 108 m (4) related to CDON.
In the valuation of Kinnevik's investment in Rocket Internet, and direct investments in Rocket's portfolio companies, all portfolio companies with the exception of Zalando and Groupon have been valued at cost, which is considered to correspond to fair value. Rocket's shares in Groupon have been valued at current stock-market price at year-end and Zalando is recognized at the assessed fair value by applying a multiple to the company's historic sales. The multiple was determined based on a comparison with a group of comparable companies.
During 2011 and early 2012, a number of Rocket's portfolio companies issued new shares to external investors at price levels that exceeded Kinnevik's recognized assessed fair values. Since the newly issued shares have better preference over the portfolio companies' assets in the event of liquidation or sale than Kinnevik's shares have, Kinnevik do not consider these price levels as a relevant base for assessing the fair values in the accounts. The latest transactions that have been made with better preference than Kinnevik's shareholdings, have been made at levels that, applied on Kinnevik's shareholdings, is above three billion kronor higher than Kinnevik's book value as per 31 December 2011.
Rocket Internet
Rocket Internet is a company that incubates and develops e-commerce and other consumer-oriented online companies. Through an agreement signed in 2009, Kinnevik owns 25% of Rocket Internet following the exercise of outstanding warrants (12% before exercise of warrants).
Kinnevik works closely with the founders of Rocket Internet in order to start up companies and develop them into leading Internet players. During 2011, a number of companies were established in emerging markets where Rocket Internet's online expertise can be combined with Kinnevik's experience and network in emerging markets.
Rocket Internet's portfolio comprises companies that are active in:
- E-commerce with a focus on footwear and fashion, with Zalando in Europe, Dafiti in Brazil, Lamoda in Russia and a number of other newly started companies in emerging markets
- E-commerce of furniture, with Home 24 (formerly Möbel-Profi) in Europe and a number of new companies that have been started in emerging markets.
- Other E-commerce comprising outdoor articles, toys, jewelry, interior decor and beauty products (Glossybox).
- Group discounts, with MyCitydeal, a company started up by Rocket merging with the US company Groupon in 2010.
- Marketplaces for brokering short-term housing through the companies Wimdu and Airizu.
- The profile-matching dating website, e-Darling.
During 2011, Kinnevik, together with Rocket Internet and other external investors, increased its investments in the portfolio companies. Kinnevik's investments are distributed as follows:
| Accumulated invested |
||
|---|---|---|
| Invested amount | 2011 | amounts |
| Rocket Internet | 345 | |
| Zalando | 828 | 1 027 |
| Other e-commerce companies within footwear, fashion and accessories |
565 | 738 |
| Home24 and other e-commerce companies within furniture |
363 | 363 |
| Other e-commerce companies | 574 | 596 |
| Wimdu, Airizu | 343 | 342 |
| Total invested | 2673 | 3411 |
Zalando
Zalando started its operations in Germany in 2008 and has today online shops also in the Netherlands, France, the United Kingdom, Austria, Italy and Switzerland. The company intends to continue its expansion geographically and through increasing its range of footwear, fashion and accessories. In 2011, Zalando launched its own logistic center and opened the first warehouse operated by the company. A new warehouse construction project was initiated in the city of Erfurt in Germany to start operations in 2012.
Kinnevik's holdings
Zalando has continued its strong growth in 2011. In the first half of 2011, the company generated net sales of approximately EUR 200 m, compared to full year sales of EUR 159 m in 2010. Due to the strong growth and geographical expansion, the company reported an operating loss.
Groupon
| Jan-Dec | Oct-Dec | ||||
|---|---|---|---|---|---|
| Key data (USD m) | 2011 | 2010 | 2011 | 2010 | |
| Revenue | 1625 | 313 | 506 | 172 | |
| Operating profit/loss, EBIT | $-203$ | $-420$ | 15 | -336 | |
| Net loss | $-275$ | $-413$ | $-37$ | $-335$ |
Groupon is a leading daily deal site with a global presence, offering goods and services at a discount on local e-commerce marketplaces. The Company has today more than 10,000 employees in some 45 countries. The company has offerings within six comprehensive categories; local, national, travel, events, goods and Now!, offerings in limited quantities that are available only for a short period of time, and the company intends to keep diversifying its portfolio of services through more categories. During 2011, Groupon has continued growing its customer base and revenues have increased over five times compared to last year. Due to strong growth, the company reported an operating loss.
Avito
Avito.ru is the leading online service for classified advertising in Russia. In the fourth quarter, the company had an average of 3.6 million new classifieds per month (2.1 million for the corresponding period last year) and 18.3 million $(8.7)$ million unique monthly visitors. The company has in 2011 continued to invest to further strengthen its leading position. Revenues primarily derive from advertising sales on the website.
CDON
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) | 2011 | 2010 | 2011 | 2010 |
| Revenue | 3404 | 2 2 1 0 | 1 316 | 769 |
| Operating profit, EBIT | 149 | 135 | 71 | 38 |
| Net profit | 83 | 90 | 48 | 26 |
CDONs net sales were up 71% year on year in the quarter and 54% for the year to date and organically sales were up 49% year on year in the quarter and 37% for the year to date, following sales growth and continued market share gains for each business segment. The Group's sites attracted $60.8$ $(37.4)$ million visits during the quarter and generated 2.2 (1.6) million orders during the period. A total of $171.8$ (114.1) million visits and 6.0 (4.7) million orders were registered for the full year.
The gross margin was 17.4% (18.1%) in the quarter and 17.3% (19.0%) for the full year. The decrease in margin is a result of the ongoing shift in the Entertainment segment away from the sale of media products towards growth categories such as consumer electronic products, and affected by the consolidation of Tretti.com from 3 June 2011, as the company's gross margins are somewhat lower than the Group's average. The full year decrease is primarily reflecting the one-off costs related to the restatement of Norwegian customs duties and VAT.
Microfinancing
| Investment (SEK m) | Ownership | amount | Invested Estimated fair value |
|---|---|---|---|
| Bayport | 37% | 329 | 405 |
| Other Microfinancing investments |
mixed | 44 | 41 |
| Total | 373 | 446 |
Similar to the manner in which Kinnevik developed telecom services in emerging markets through innovative products and distribution networks, Kinnevik is now searching for investment opportunities in the microfinancing sector.
Bayport, a company offering micro credits and financial services in five African countries (Ghana, Uganda, Zambia, Tanzania and Botswana) as well as in Colombia, is Kinnevik's largest investment in the microfinancing sector. Bayport was founded in 2002 and has grown with profitability into a leading African micro credit company with total assets of around USD 265 m. The company has about 235,000 customers and the product portfolio is continuously expanding, primarily with loans with longer duration. Loans are used primarily for financing larger non-recurrent expenses, such as school fees, investment in farming or for starting smaller companies.
Ghana and Zambia are Bayport's largest markets, while also the other countries are displaying rapid growth. Bayport expanded its operations to Colombia in the first quarter of 2011 through the acquisition of a majority stake in the Colombian payroll deduction company FiMSA.
Microvest II is a fund focusing on equity investments in micro financing companies in emerging markets. The fund has currently four investments, of which two in India, one in Paraguay and one in Peru.
Kinnevik's holdings
Agriculture
| Investment (SEK m) | Ownership | Invested amount |
Estimated fair value |
|---|---|---|---|
| Black Earth Farming, Russia | 24.9% | 659 | 427 |
| Rolnyvik, Poland | 100% | 174 | 250 |
| Total | 833 | 677 |
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| Jan-Sept | Full year | ||
|---|---|---|---|
| Key data (USD m) | 2011 | 2010 | 2010 |
| Revenue | 30.2 | 26.0 | 46.9 |
| Operating loss, EBIT | -13.6 | -11.7 | -31.2 |
| Net loss | -28.9 | -21.5 | -42.5 |
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Agriculture – non-listed holdings
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Renewable energy
| Investment (SEK m) | Ownership | Invested amount |
Estimated fair value |
|---|---|---|---|
| Latgran | 75% | 129 | 245 |
| Vireo | 75% | 58 | 58 |
| Total | 187 | 303 |
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| Latgran | Jan-Dec | Oct-Dec | |||
|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | 2011 | 2010 | |
| Revenue | 319 | 299 | 104 | 92 | |
| EBIT | 32 | 54 | 8 | 17 | |
| Production, thousand tons | 292 | 239 | 111 | 66 | |
| Deliveries, thousand tons | 265 | 237 | 77 | 74 |
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Parent Company and other
The administration costs within the Parent Company and the Group's other companies amounted to a net expense of SEK 99 m (expense of 67) for the year after invoicing for services performed.
Business combination
At the end of May, Kinnevik acquired 68% of the shares in G3 Good Governance Group ("G3"), a company that offers emerging market strategic advisory services, for a consideration of GBP 18 m including cash and cash equivalents of GBP 5 m. According to the preliminary purchase price allocation, the transaction gave rise to goodwill of SEK 135 m in Kinnevik's consolidated financial statements. For the period June-December, G3 contributed SEK 22 m to consolidated earnings. If G3 had been part of the Kinnevik Group from 1 January, consolidated earnings would have been SEK 8 m higher.
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 market development, 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, 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 31 of the 2010 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 2010 Annual Report.
From 2011 the accounting segments consist of Paper & Packaging (Korsnäs), Other operating subsidiaries (former part of New Ventures) and Parent Company and other. The change is further described in Note 1 on page 20.
Kinnevik Annual General Meeting 2012
The Annual General Meeting will be held on Monday 7 May 2012 at 10:00 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 [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 2012 Annual General Meeting
In accordance with the resolution of the 2011 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, Henry Guy 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 2011 will be released on the company's website on 2 April 2012. Reporting dates for 2012: 20 April Interim Report January-March
| 20 July | Interim Report January-June |
|---|---|
| 19 October | Interim Report January-September |
Stockholm, 15 February 2012
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 15 February 2012.
Review Report
Introduction
We have reviewed the condensed year-end release for Investment AB Kinnevik (publ) for the period 1 January to 31 December 2011. The Board of Directors and the CEO are responsible for the preparation and presentation of this year-end release in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this year-end release 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 year-end release 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 2012 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 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 seven business sectors; Paper & Packaging, Telecom & Services, Media, Online, Microfinancing, Agriculture and 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 NASDAO 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)
| 2011 | 2010 | ||||
|---|---|---|---|---|---|
| 2011 | 2010 | 1 Oct | 1 Oct | ||
| Note | Full year | Full year | 31 Dec | 31 Dec | |
| Revenue | 8 789 | 8 593 | 2 179 | 2 151 | |
| Cost of goods sold and services | -7 476 | -7 315 | -1 984 | -1 909 | |
| Gross profit/loss | 1 313 | 1 278 | 195 | 242 | |
| Selling, administration, research and development | |||||
| costs | -640 | -538 | -185 | -167 | |
| Other operating income | 158 | 326 | 71 | 69 | |
| Other operating expenses | -5 | -177 | 0 | -23 | |
| Operating profit/loss | 826 | 889 | 81 | 121 | |
| Dividends received | 2 | 4 951 | 3 105 | 767 | 416 |
| Change in fair value of financial assets | 2 | 1 171 | 9 899 | 4 361 | -69 |
| Interest income and other financial income | 68 | 60 | 19 | 13 | |
| Interest expenses and other financial expenses | -328 | -216 | -88 | -65 | |
| Profit/loss after financial items | 6 688 | 13 737 | 5 140 | 416 | |
| Taxes | -133 | -115 | -4 | 29 | |
| Net profit/loss for the period | 6 555 | 13 622 | 5 136 | 445 | |
| Of which attributable to: | |||||
| Equity holders of the Parent Company | 6 553 | 13 602 | 5 136 | 443 | |
| Non-controlling interest | 2 | 20 | 0 | 2 | |
| Earnings per share before dilution, SEK | 23.64 | 49.08 | 18.53 | 1.60 | |
| Earnings per share after dilution, SEK | 23.62 | 49.05 | 18.51 | 1.59 | |
| Average number of shares before dilution | 277 173 242 | 277 158 190 | 277 183 276 | 277 158 190 | |
| Average number of shares after dilution | 277 396 143 | 277 286 286 | 277 442 627 | 277 336 980 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (SEK m)
| 2011 | 2010 | |||
|---|---|---|---|---|
| 2011 | 2010 | 1 Oct | 1 Oct | |
| Full year | Full year | 31 Dec | 31 Dec | |
| Net profit/loss for the period | 6 555 | 13 622 | 5 136 | 445 |
| Other comprehensive income for the period | ||||
| Translation differences | -3 | -50 | -10 | -7 |
| Cash flow hedging | -82 | 97 | -3 | 73 |
| Actuarial profit/loss | -14 | 6 | -14 | 6 |
| Tax attributable to other comprehensive income | 25 | -27 | 4 | -21 |
| Total other comprehensive income for the period | -74 | 26 | -23 | 51 |
| Total comprehensive income for the period | 6 481 | 13 648 | 5 113 | 496 |
| Total comprehensive income for the period attribu table to: |
||||
| Equity holders of the Parent Company | 6 478 | 13 634 | 5 114 | 495 |
| Non-controlling interest | 3 | 14 | -1 | 1 |
CONDENSED CONSOLIDATED CASH-FLOW STATEMENT (SEK m)
| 2011 | 2010 | 2011 1 Oct |
2010 1 Oct |
|
|---|---|---|---|---|
| Full year | Full year | 31 Dec | 31 Dec | |
| Operating profit | 826 | 889 | 81 | 121 |
| Adjustment for non-cash items | 605 | 610 | 146 | 139 |
| Taxes paid | -190 | -301 | -30 | -32 |
| Cash flow from operations before change in working capital | 1 241 | 1 198 | 197 | 228 |
| Change in working capital | -460 | 112 | 7 | 102 |
| Cash flow from operations | 781 | 1 310 | 204 | 330 |
| Acquisition of subsidiaries | -148 | -85 | - | -85 |
| Investments in tangible and biological fixed assets | -792 | -688 | -329 | -282 |
| Sales of tangible and biological fixed assets | 7 | 7 | 0 | 7 |
| Investments in intangible fixed assets | -5 | -29 | -1 | -7 |
| Investments in shares and other securities | -2 744 | -1 478 | -810 | -351 |
| Sales of shares and other securities | 28 | - | - | - |
| Dividends received | 4 951 | 3 029 | 767 | - |
| Changes in loan receivables | -26 | -63 | -35 | -117 |
| Interest received | 27 | 23 | 19 | 4 |
| Cash flow from investing activities | 1 298 | 716 | -389 | -831 |
| Change in interest-bearing liabilities | -468 | -1 079 | 198 | 427 |
| Interest paid | -328 | -203 | -86 | -65 |
| Dividend paid to equity holders of the Parent company | -1 247 | -831 | - | - |
| Dividend paid to holders of non-controlling interest | -4 | - | -4 | - |
| Cash flow from financing activities | -2 047 | -2 113 | 108 | 362 |
| Cash flow for the period | 32 | -87 | -77 | -139 |
| Exchange rate differences in liquid funds | 0 | 0 | 0 | 0 |
| Cash and short-term investments, opening balance | 150 | 237 | 259 | 289 |
| Cash and short-term investments, closing balance | 182 | 150 | 182 | 150 |
.
CONDENSED CONSOLIDATED BALANCE SHEET (SEK m)
| 2011 | 2010 | |
|---|---|---|
| Note ASSETS Fixed assets |
31 Dec | 31 Dec |
| Intangible fixed assets Tangible and biological fixed assets |
957 6 526 |
828 6 385 |
| Financial assets accounted to fair value through | ||
| profit and loss 3 |
58 615 | 54 324 |
| - whereof interest-bearing | 227 | 188 |
| Financial assets held to maturity | 263 | 225 |
| Investments in companies accounted for using the | ||
| equity method | 242 | 126 |
| 66 603 | 61 888 | |
| Current assets | ||
| Inventories | 2 180 | 1 663 |
| Trade receivables | 771 | 829 |
| Tax receivables | 25 | 12 |
| Other current assets | 307 | 291 |
| Short-term investments | 0 | 5 |
| Cash and cash equivalents | 182 | 145 |
| 3 465 | 2 945 | |
| TOTAL ASSETS | 70 068 | 64 833 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||
| Shareholders' equity | ||
| Equity attributable to equity holders of the Parent | ||
| Company | 59 637 | 54 398 |
| Equity attributable to non-controlling interest | 50 | 27 |
| 59 687 | 54 425 | |
| Long-term liabilities | ||
| Interest-bearing loans | 5 662 | 7 081 |
| Provisions for pensions | 534 | 542 |
| Other provisions | 9 | 26 |
| Deferred tax liability | 1 060 | 1 107 |
| Other liabilities | 12 | 4 |
| 7 277 | 8 760 | |
| Short-term liabilities | ||
| Interest-bearing loans | 1 015 | 63 |
| Provisions | 19 | 39 |
| Trade payables | 999 | 981 |
| Income tax payable | 10 | 24 |
| Other payables | 1 061 | 541 |
| 3 104 | 1 648 | |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 70 068 | 64 833 |
CONDENSED REPORT OF CHANGES IN EQUITY FOR THE GROUP (SEK m)
| 2011 | 2010 | |||
|---|---|---|---|---|
| 2011 | 2010 | 1 Oct | 1 Oct | |
| Full year | Full year | 31 Dec | 31 Dec | |
| Equity, opening balance | 54 425 | 41 675 | 54 576 | 54 000 |
| Total comprehensive income for the period | 6 481 | 13 648 | 5 113 | 496 |
| Acquisition from non-controlling interest | - | -71 | - | - |
| Business combination, non-controlling interest | 22 | - | - | -71 |
| Contribution from non-controlling interest | 2 | - | - | - |
| Dividend paid to owners of non-controlling interest | -4 | - | -4 | - |
| Dividend paid to shareholders of the Parent company | -1 247 | -831 | - | - |
| Effect of employee share saving | ||||
| programme | 8 | 4 | 2 | 0 |
| Equity, closing amount | 59 687 | 54 425 | 59 687 | 54 425 |
| Equity attributable to the shareholders of the Parent Company | 59 637 | 54 398 | 59 637 | 54 398 |
| Equity attributable to non-controlling interest | 50 | 27 | 50 | 27 |
| 2011 | 2010 | |
|---|---|---|
| KEY RATIOS | 31 Dec | 31 Dec |
| Debt/equity ratio | 0.12 | 0.14 |
| Equity ratio | 85% | 84% |
| Net debt | 6 539 | 7 123 |
DEFINITIONS OF KEY RATIOS
| Debt/equity ratio | Interest-bearing liabilities including interest-bearing provisions divided by sharehol ders' 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 inte rest-bearing receivables, short-term investments and cash and cash equivalents. |
| Operating margin | Operating profit after depreciation divided by revenue. |
| Operational capital employed | Average of intangible and tangible fixed assets, investments in companies accounted for using the equity method, inventories and short-term non-interest bearing receiva bles less other provisions and short-term non interest bearing liabilities. |
| Return on operational capital employed | Operating profit after depreciation divided by average operational capital employed. |
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, starting from 2011, distributed on the following three accounting segments:
Paper & Packaging - Korsnäs (former Major Unlisted Holdings).
Other operating subsidiaries - Latgran, Rolnyvik, Vireo Energy, Relevant Traffic, Guider Media, Duego Technologies and Milvik (former subsidiaries within New Ventures) as well as G3 Good Governance Group.
Parent Company & other - all other companies and financial assets (including change in fair value of financial assets earlier reported within Major Listed Holdings and New Ventures).
This distribution coincides with management's internal structure for controlling and monitoring the Group's operations. The comparative figures have been recalculated.
| Other | Parent | ||||
|---|---|---|---|---|---|
| Paper & | operating | company & | Total | ||
| 1 Jan-31 Dec 2011 | packaging | subsidiaries | other | Eliminations | Group |
| Revenue | 8 254 | 637 | 24 | -126 | 8 789 |
| Operating costs | -6 873 | -607 | -121 | 132 | -7 469 |
| Depreciation | -608 | -37 | -2 | -647 | |
| Other operating income and expenses | 134 | 18 | 7 | -6 | 153 |
| Operating profit/loss | 907 | 11 | -92 | 0 | 826 |
| Dividends received | 4 | 4 947 | 4 951 | ||
| Change in fair value of financial assets | 97 | 1 074 | 1 171 | ||
| Financial net | -155 | -4 | -101 | -260 | |
| Profit/loss after financial items | 853 | 7 | 5 828 | 0 | 6 688 |
| Investments in subsidiaries and financial fixed assets |
112 | 143 | 3 127 | 3 382 | |
| Investments in intangible fixed assets | 5 | 5 | |||
| Investments in tangible and biological fixed | |||||
| assets | 687 | 103 | 2 | 792 |
| Other | Parent | ||||
|---|---|---|---|---|---|
| Paper & | operating | company & | Total | ||
| 1 Jan-31 Dec 2010 | packaging | subsidiaries | other | Eliminations | Group |
| Revenue | 8 178 | 508 | 25 | -118 | 8 593 |
| Operating costs | -6 803 | -459 | -91 | 125 | -7 228 |
| Depreciation | -602 | -22 | -1 | -625 | |
| Other operating income and expenses | 153 | -17 | 20 | -7 | 149 |
| Operating profit/loss | 926 | 10 | -47 | 0 | 889 |
| Dividends received | 4 | 3 101 | 3 105 | ||
| Change in fair value of financial assets | 64 | 9 835 | 9 899 | ||
| Financial net | -116 | -1 | -39 | -156 | |
| Profit/loss after financial items | 878 | 9 | 12 850 | 0 | 13 737 |
| Investments in financial fixed assets | 115 | 1 448 | 1 563 | ||
| Investments in intangible fixed assets | 29 | 29 | |||
| Investments in tangible and biological fixed | |||||
| assets | 604 | 82 | 2 | 688 | |
| Impairment of goodwill | -34 | -34 |
| 1 Oct-31 Dec 2011 | Paper & packaging |
Other operating subsidiaries |
Parent company & other |
Eliminations | Total Group |
|---|---|---|---|---|---|
| Revenue | 2 013 | 197 | 7 | -38 | 2 179 |
| Operating costs | -1 802 | -192 | -53 | 40 | -2 007 |
| Depreciation | -154 | -8 | 0 | -162 | |
| Other operating income and expenses | 66 | 6 | 1 | -2 | 71 |
| Operating profit/loss | 123 | 3 | -45 | 0 | 81 |
| Dividends received | 767 | 767 | |||
| Change in fair value of financial assets | 69 | 4 292 | 4 361 | ||
| Financial net | -42 | -2 | -25 | -69 | |
| Profit/loss after financial items | 150 | 1 | 4 989 | 0 | 5 140 |
| Investments in subsidiaries and financial fixed | |||||
| assets | 62 | 1 238 | 1 300 | ||
| Investments in intangible fixed assets | 1 | 1 | |||
| Investments in tangible and biological fixed assets |
292 | 37 | 329 |
| Other | Parent | ||||
|---|---|---|---|---|---|
| Paper & | operating | company & | Total | ||
| 1 Oct-31 Dec 2010 | packaging | subsidiaries | other | Eliminations | Group |
| Revenue | 1 998 | 155 | 7 | -9 | 2 151 |
| Operating costs | -1 756 | -143 | -30 | 11 | -1 918 |
| Depreciation | -153 | -7 | 2 | -158 | |
| Other operating income and expenses | 27 | 4 | 17 | -2 | 46 |
| Operating profit/loss | 116 | 9 | -4 | 0 | 121 |
| Dividends received | 416 | 416 | |||
| Change in fair value of financial assets | 23 | -92 | -69 | ||
| Financial net | -32 | -12 | -8 | -52 | |
| Profit/loss after financial items | 107 | -3 | 312 | 0 | 416 |
| Investments in subsidiaries and financial fixed assets |
50 | 386 | 436 | ||
| Investments in intangible fixed assets | 7 | 7 | |||
| Investments in tangible and biological fixed assets |
233 | 48 | 1 | 282 | |
| Impairment of goodwill |
Note 2 Change in fair value of financial assets and dividends received
| 2011 | 2010 | |||
|---|---|---|---|---|
| 2011 | 2010 | 1 Oct | 1 Oct | |
| Full year | Full year | 31 Dec | 31 Dec | |
| Listed holdings | ||||
| Millicom | 2 965 | 5 961 | 956 | -19 |
| Tele2 | 2 873 | 4 776 | 1 071 | -258 |
| Transcom | -314 | -304 | -109 | 21 |
| MTG | -1 472 | 1 695 | 716 | -354 |
| Metro shares | -138 | 42 | -27 | 22 |
| Metro warrants | -244 | 28 | -65 | 15 |
| CDON | 108 | 4 | 209 | 4 |
| Groupon, direct ownership 1) | 747 | 430 | 743 | 430 |
| Black Earth Farming | -396 | 105 | -110 | 246 |
| Total listed holdings | 4 129 | 12 737 | 3 384 | 107 |
| Unlisted holdings | ||||
| Paper & Packaging | 101 | 68 | 69 | 24 |
| Online | 1 811 | 206 | 1 650 | 212 |
| Microfinancing | 73 | 1 | 25 | 3 |
| Agriculture | 8 | -8 | 0 | 1 |
| Total unlisted holdings | 1 993 | 267 | 1 744 | 240 |
| Total | 6 122 | 13 004 | 5 128 | 347 |
Note 3 Financial assets accounted at fair value through profit and loss
| 31 Dec 2011 | ||||||
|---|---|---|---|---|---|---|
| Class A shares |
Class B shares |
2011 31 Dec |
2010 31 Dec |
|||
| Listed holdings | ||||||
| Millicom | 37 835 438 | 26 088 | 24 309 | |||
| Tele2 | 18 507 492 | 116 988 645 | 18 129 | 18 915 | ||
| Transcom | 247 164 416 | 163 806 836 | 189 | 333 | ||
| MTG | 5 119 491 | 8 384 365 | 4 436 | 6 009 | ||
| Metro shares | 112 122 875 | 133 798 591 | 148 | 285 | ||
| Metro warrants, 717 715 821 | 129 | 374 | ||||
| CDON | 16 639 607 | 629 | 420 | |||
| Groupon, direct ownership 1) | 8 377 156 | 1 197 | 450 | |||
| Black Earth Farming | 31 087 097 | 427 | 824 | |||
| Total listed holdings | 51 372 | 51 919 | ||||
| Unlisted holdings | ||||||
| Paper & Packaging | 656 | 561 | ||||
| Online | 5 895 | 1 258 | ||||
| Microfinancing | 440 | 348 | ||||
| Agriculture | 3 | 24 | ||||
| Parent Company & other | 249 | 214 | ||||
| Total unlisted holdings | 7 243 | 2 405 | ||||
| Total | 58 615 | 54 324 |
1) The Groupon share was listed on 4 november 2011. The values for 2010 have been moved from unlisted to listed holdings for comparability.
FINANCIAL KEY RATIOS MAJOR UNLISTED HOLDINGS (SEK m)
| 2011 Full year |
2011 Q4 |
2011 Q3 |
2011 Q2 |
2011 Q1 |
2010 Full year |
2010 Q4 |
2010 Q3 |
2010 Q2 |
2010 Q1 |
2009 Full year |
2009 Q4 |
|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ||||||||||||
| Korsnäs Industrial | 7 129 | 1 723 | 1 794 | 1 738 | 1 874 | 7 148 | 1 751 | 1 766 | 1 720 | 1 911 | 7 098 | 1 757 |
| Korsnäs Forestry | 1 125 | 290 | 268 | 306 | 261 | 1 030 | 247 | 252 | 283 | 248 | 941 | 264 |
| Total Korsnäs | 8 254 | 2 013 | 2 062 | 2 044 | 2 135 | 8 178 | 1 998 | 2 018 | 2 003 | 2 159 | 8 039 | 2 021 |
| Operating profit before depreciation (EBITDA) |
||||||||||||
| Korsnäs Industrial | 1 460 | 258 | 481 | 317 | 404 | 1 476 | 257 | 502 | 383 | 334 | 1 430 | 381 |
| Korsnäs Forestry | 55 | 18 | 13 | 13 | 11 | 52 | 12 | 17 | 10 | 13 | 32 | 13 |
| Total Korsnäs | 1 515 | 276 | 494 | 330 | 415 | 1 528 | 269 | 519 | 393 | 347 | 1 462 | 394 |
| Operating profit after depreciation (EBIT) |
||||||||||||
| Korsnäs Industrial | 859 | 107 | 330 | 168 | 254 | 879 | 105 | 352 | 234 | 188 | 826 | 231 |
| Korsnäs Forestry | 48 | 16 | 12 | 10 | 10 | 47 | 11 | 16 | 9 | 11 | 25 | 11 |
| Total Korsnäs | 907 | 123 | 342 | 178 | 264 | 926 | 116 | 368 | 243 | 199 | 851 | 242 |
| Operating margin | ||||||||||||
| Korsnäs Industrial | 12.0% | 6.2% | 18.4% | 9.7% | 13.6% | 12.3% | 6.0% | 19.9% | 13.6% | 9.8% | 11.6% | 13.1% |
| Korsnäs Forestry | 4.3% | 5.5% | 4.5% | 3.3% | 3.8% | 4.6% | 4.5% | 6.3% | 3.2% | 4.4% | 2.7% | 4.2% |
| Korsnäs | 11.0% | 6.1% | 16.6% | 8.7% | 12.4% | 11.3% | 5.8% | 18.2% | 12.1% | 9.2% | 10.6% | 12.0% |
| Operational capital em ployed |
||||||||||||
| Korsnäs Industrial | 7 893 | 8 148 | 7 792 | 7 653 | 7 678 | 7 457 | 7 545 | 7 423 | 7 392 | 7 402 | 7 411 | 7 332 |
| Korsnäs Forestry | 359 | 367 | 410 | 422 | 306 | 352 | 337 | 343 | 369 | 353 | 438 | 389 |
| Total Korsnäs | 8 252 | 8 515 | 8 202 | 8 075 | 7 984 | 7 809 | 7 882 | 7 766 | 7 761 | 7 755 | 7 849 | 7 721 |
| Return on operational capital employed |
||||||||||||
| Korsnäs Industrial | 10.9% | 5.3% | 16.9% | 8.8% | 13.2% | 11.8% | 5.6% | 19.0% | 12.7% | 10.2% | 11.1% | 12.6% |
| Korsnäs Forestry | 13.4% | 17.4% | 11.7% | 9.5% | 13.1% | 13.4% | 13.1% | 18.7% | 9.8% | 12.5% | 5.7% | 11.3% |
| Korsnäs | 11.0% | 5.8% | 16.7% | 8.8% | 13.2% | 11.9% | 5.9% | 19.0% | 12.5% | 10.3% | 10.8% | 12.5% |
| Production, thousand | ||||||||||||
| tons | 1 061 | 247 | 280 | 256 | 278 | 1 019 | 243 | 278 | 237 | 261 | 1 025 | 261 |
| Deliveries, thousand tons | 1 002 | 238 | 255 | 250 | 259 | 1 021 | 241 | 259 | 252 | 269 | 1 034 | 253 |
CONDENSED PARENT COMPANY INCOME STATEMENT (SEK m)
| 2011 | 2010 | |||
|---|---|---|---|---|
| 2011 | 2010 | 1 Oct | 1 Oct | |
| Full year | Full year | 31 Dec | 31 Dec | |
| Revenue | 18 | 19 | 4 | 5 |
| Administration costs | -121 | -83 | -52 | -30 |
| Other operating income | 2 | 4 | 1 | 1 |
| Operating loss | -101 | -60 | -47 | -24 |
| Dividends received | 3 640 | 1 445 | 17 | 305 |
| Result from financial assets | -661 | 531 | -128 | 519 |
| Net interest income/expense | 111 | 405 | -151 | 90 |
| Profit/loss after financial items | 2 989 | 2 321 | -309 | 890 |
| Taxes | -8 | -57 | 47 | -12 |
| Net profit/loss for the period | 2 981 | 2 264 | -262 | 878 |
CONDENSED PARENT COMPANY BALANCE SHEET (SEK m)
| 2011 | 2010 | |
|---|---|---|
| 31 Dec | 31 Dec | |
| ASSETS | ||
| Tangible fixed assets | 2 | 2 |
| Financial fixed assets | 42 581 | 42 545 |
| Short-term receivables | 569 | 551 |
| Cash and cash equivalents | 1 | 1 |
| TOTAL ASSETS | 43 153 | 43 099 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||
| Equity | 38 712 | 36 972 |
| Provisions | 32 | 36 |
| Long-term liabilities | 1 828 | 5 216 |
| Short-term liabilities | 2 581 | 875 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 43 153 | 43 099 |
The Parent Company's liquidity, including short-term investments and unutilized credit facilities, totalled SEK 4,437 m at 31 December 2011 and SEK 4,051 m at 31 December 2010. The Parent Company's interest bearing external liabilities amounted to SEK 2,173 m (2,551) on the same dates.
Investments in tangible fixed assets amounted to SEK 1 m (1) during the period.
Result from financial assets are mainly attributable to write-down of listed shares and group internal sales of financial assets.
As of 31 December 2011 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, 228,517,952 are class B shares with one vote each and 399,914 are class C treasury shares with one vote each. During May, 25,086 class C shares were converted to class B shares and delivered to the participants in the Long Term Incentive Plan for 2008. The total number of votes in the Company amounted at 31 December to 715,571,106 (715,171,192 excluding 399,914 class C 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 2011. There are no convertibles or warrants in issue.