Interim / Quarterly Report • Jul 20, 2018
Interim / Quarterly Report
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"Business activity has continued at a high pace with transformative developments in our public portfolio, as well as new investments into three exciting private companies in our focus sectors"
Georgi Ganev, CEO of Kinnevik
SEK 96.4BN 3% NAV 30 juN 2018 cHANgE IN NAV Q/Q 1 yEAR TSR 5 yEAR TSR
21%
17%
| SEKm | 30 jun 2018 | 31 Mar 2018 | 31 Dec 2017 | 30 jun 2017 | |
|---|---|---|---|---|---|
| Net Asset Value | 96 409 | 93 341 | 90 633 | 81 887 | |
| Net Asset Value per share, SEK | 350.42 | 339.28 | 329.44 | 297.65 | |
| Share Price, SEK | 306.80 | 299.20 | 276.40 | 258.00 | |
| Net Cash / (Net Debt) | -2 902 | -1 079 | -1 062 | -775 | |
| SEKm | Q2 2018 | Q2 2017 | H1 2018 | H1 2017 | Fy 2017 |
| Net Proft | 5 344 | 4 582 | 8 047 | 11 632 | 20 359 |
| Net Proft per Share, SEK | 19.39 | 16.63 | 29.20 | 42.23 | 73.90 |
| Change in Fair Value of Financial Assets | 4 195 | 2 841 | 6 755 | 9 934 | 18 395 |
| Dividends Received | 1 220 | 1 842 | 1 438 | 1 842 | 2 260 |
| Dividend Paid | -2 270 | -2 201 | -2 270 | -2 201 | -2 201 |
| Investments | 789 | 3 894 | 810 | 4 089 | 4 774 |
| Divestments | 89 | 3 090 | 101 | 5 173 | 5 280 |
Kinnevik has a long history and track record as an owner and builder of companies, and it is our vision to make people's lives better by providing more and better choice. In the fast-changing world we live in, it is easy to forget that only some 30 years ago, consumers all over the world were far more limited in our choice of how to shop, what to watch and how to connect with each other. Not to mention our choice of fnancial advisory services and how to access healthcare. By building and supporting companies such as Zalando, MTg, Tele2, Betterment and livongo, Kinnevik has contributed to the digital disruption and improved consumer choice. Realising our vision and driving shareholder value also requires us to be fexible, and in the second quarter we announced transformative developments in our public portfolio, as well as new investments into three exciting private companies in our focus sectors.
Kinnevik's strategy builds on active ownership, which requires agility and the ability to pivot in order to deliver on our long-term vision.
When we announced our support of the merger between Tele2 and Com Hem in January, we also committed to effecting pro-competitive measures if necessary to complete the merger. To honor this commitment, Kinnevik's Board has proposed to distribute Kinnevik's shares in MTG to shareholders in mid-August. An Extraordinary General Meeting was held in mid-July where shareholders approved the proposal.
In addition to facilitating the regulatory clearance of the merger of Tele2 and Com Hem, the distribution will deliver an extra dividend-in-kind to Kinnevik's shareholders of in total around SEK 4.3bn or SEK 16 per Kinnevik share. The distribution also gives our shareholders the opportunity to become direct shareholders in MTG and Nordic Entertainment Group, following the ongoing split of MTG, two companies which I believe have very attractive customer propositions and market opportunities.
As the largest owner of Qliro Group, Kinnevik is also fully supportive of the company's strategic decision to focus on operating Qliro Financial Services, CDON Marketplace and Nelly as three fully independent companies. We share Qliro Group's view that the three companies have begun to reach suffcient size and maturity to operate on a stand-alone basis, and that this creates the best conditions for strengthening the competitiveness of each company.
Home24, the home & living e-commerce platform in which Kinnevik frst invested in 2011, was listed on the Frankfurt Stock Exchange in June. The company has in recent years refned its customer proposition, resulting in an acceleration of revenue growth. The IPO generated high investor interest and was multiple times over-subscribed, resulting in a SEK 0.7bn value uplift for Kinnevik in the quarter. After the IPO, Kinnevik remains a large owner with 12% of the shares.
Driving growth and value in our private portfolio is a key strategic priority, and during the frst six months of 2018 we have intensifed our investment activities. In addition to the investment in Budbee in April, announced in the frst quarter report, we have added two new companies to our private portfolio during the second quarter, Pleo and Cedar. Both are great examples of our commitment to realize our mission to build digital businesses that address material, everyday consumer needs.
We invested SEK 67m for a 13% stake in the Denmark based corporate payment card solution company Pleo. With its offering of smart employee payment cards, Pleo has developed a new way to manage company expenses whilst ensuring companies have full control over spending. Through new technology, Pleo helps reduce administrative complexity, eliminates expense reports, and simplifes bookkeeping.
We invested SEK 141m for a 8% stake in Cedar, our third investment in healthcare. Based in New York, Cedar has developed an intelligent payment platform for patient billing. By leveraging machine learning and data science, Cedar generates a personalized outreach strategy, payment plan, and preferred method of payment for each and every patient. Healthcare organizations use Cedar's platform to manage patient engagement, monitor fnancial activity, and track key payment metrics.
Kinnevik's NAV increased by 3% to SEK 96.4bn, or SEK 350 per share, in the second quarter, driven mainly by a positive development in Zalando and Tele2. The value of our private assets increased slightly in the quarter to SEK 12.6bn. On 19 July, our NAV had increased by SEK 2.3bn to SEK 98.7bn, or SEK 359 per share. Kinnevik ended the quarter in a strong fnancial position, with net debt of SEK 2.9bn, corresponding to a leverage of 3%.
In my job, I get challenged daily by the great entrepreneurs and people in our companies. We are excited to join the ride of Budbee, Pleo and Cedar, and to continue supporting our current investments ranging from larger companies like Zalando to younger challengers like Livongo. I would like to thank you, our shareholders, for your support and take this opportunity to wish you a great summer!
Georgi Ganev Chief Executive Offcer
Kinnevik is an industry focused investment company with an entrepreneurial spirit. Our purpose is to build digital businesses that provide more and better choice. we do this by working in partnership with talented founders and management teams to create, develop and invest in fast growing businesses in developed and emerging markets. we believe in delivering both shareholder and social value by building companies that contribute positively to society. Kinnevik was founded in 1936 by the Stenbeck, Klingspor and von Horn families. Kinnevik's shares are listed on Nasdaq Stockholm's list for large cap companies under the ticker codes KINV A and KINV B.
TMT
Net Cash/(Debt)
yEARS ANNuAlIZED
Financial Services Total Portfolio
items and is calculated on a SEK gross basis.
One and fve-year returns are annualized internal rates of return (IRR). The returns are based on fair values at the beginning and end of the respective period, includes cash and non-cash
18%
17%
14%
9%
E-Commerce & Marketplaces
Healthcare & Other
| Zalando 15% 39 165 35 737 34 097 30 224 Global Fashion Group 5 047 5 300 5 239 5 188 -4% Quikr 1 575 1 426 1 358 1 480 16% Home24 965 299 218 184 343% Qliro Group 568 520 767 665 -26% Other 2 989 912 995 1 313 -5% Total E-commerce & Marketplaces 48 309 44 194 42 674 39 054 13% Millicom 19 883 21 680 20 942 18 759 -3% Tele2 16 021 15 210 15 350 13 475 8% Com Hem 4 921 4 588 4 226 3 957 21% MTG 5 045 4 551 4 645 3 927 12% Other 273 266 277 422 -10% Total TMT 46 143 46 295 45 440 40 540 5% Bayport 1 182 1 107 1 082 1 115 9% Betterment 1 163 1 089 1 064 548 9% Other 2 1 105 961 932 536 10% Total Financial Services 3 450 3 157 3 078 2 199 9% Livongo 584 203 105 105 128% Babylon 518 397 375 371 7% Cedar 143 - - - - Total Healthcare 1 245 600 480 476 36% Other 35 40 45 407 Total Portfolio Value 99 182 94 286 91 717 82 676 9% Net Cash / (Net Debt) -2 902 -1 079 -1 062 -775 Other Net Assets / (Liabilities) 129 134 -22 -14 Total Net Asset Value 96 409 93 341 90 633 81 887 9% |
SEKm | Fair Value 2018 30 jun |
Fair Value 2018 31 Mar |
Fair Value 2017 31 Dec |
Fair Value 2017 30 jun |
Total Return 2018 H1 1 |
|---|---|---|---|---|---|---|
| Net Asset Value per Share, SEK | 350.42 | 339.28 | 329.44 | 297.65 | 9% | |
| Closing Price, Class B Share, SEK 306.80 299.20 276.40 258.00 14% |
1 Includes investments and divestments.
2 For split see page 11.
Zalando is an online fashion platform for women, men and children, offering a broad assortment of shoes, apparel and accessories from around 2,000 global and local brands as well as private labels. with its localised offering, Zalando addresses country specifc customer preferences in each of its 15 European markets.
global Fashion group (gFg) is an online fashion destination for growth markets. gFg operates with fve branded platforms, Lamoda, Dafti, Zalora, The Iconic and Namshi, offering over 3,000 international and local brands across 24 countries with a 1.9 billion population.
35% SEK 5.0BN
Qliro group is a Nordic e-commerce group in consumer goods and complementary fnancial services. Qliro group operates cDON Marketplace, Nelly and Qliro Financial Services (QFS).
KINNEVIK STAKE FAIR VAluE
Go to company website > Go to company website >
Quikr is an online classifeds platform operating in India. Headquartered in Bangalore, Quikr serves over 20 million unique monthly visitors and focuses its operations on fve verticals; Goods, Cars & Bikes, jobs, Homes, and Services.
Go to company website > Go to company website >
westwing is a home & living e-commerce brand and platform operating across Europe. Through its "shoppable magazine" westwing inspires its customers with a curated product selection including textiles, furniture, rugs and lamps.
Home24 is an online shop for furniture and home accessories in seven core markets in Europe and Brazil. The broad range of products includes furniture, lamps, home accessories and garden equipment.
Go to company website > Go to company website >
KINNEVIK STAKE
Millicom is a provider of cable and mobile services dedicated to emerging markets in latin America and Africa. The company offers high-speed broadband
brand Tigo. • Millicom reported Q2 2018 organic service revenue growth of 5.3% and an EBITDA margin of 36%
and digital lifestyle services through its principal
Tele2 offers mobile services, fxed broadband and telephony, data network services, content services and global IoT solutions to 17 million customers in 8 countries across Europe.
Go to company website > Go to company website >
com Hem offers broadband, TV, play and telephony services to Swedish households and companies. The company offers a range of digital TV channels and play services via set top boxes as well as on-the-go for tablets and smartphones.
30% SEK 16.0BN
KINNEVIK STAKE FAIR VAluE
MTg is an international digital entertainment group. Its brands span TV, radio and next generation entertainment experiences in esports, digital video networks and online gaming.
Go to company website > Go to company website >
KINNEVIK STAKE FAIR VAluE
20% SEK 5.0BN
Betterment is the largest independent online fnancial advisor in the united States. The company operates a vertically integrated platform that provides fully automated, personalised advice and access to low cost, globally diversifed investment portfolios.
Bayport provides fnancial solutions to formally and informally employed individuals in emerging markets. The company's operations span 9 countries across Africa and latin America.
22% SEK 1.2BN
Milvik offers, under the brand BIMA, affordable and uniquely designed life and health insurance products via mobile phones. BIMA is active in 14 countries across Africa, Asia, latin America and the caribbean.
Go to company website > 33% SEK 881M KINNEVIK STAKE FAIR VAluE
Babylon is a digital healthcare service based in the united Kingdom. combining mobile tech and artifcial intelligence with medical expertise, Babylon's mission is to make healthcare more accessible and affordable for people everywhere.
livongo is a california based consumer digital health company that empowers people with chronic conditions to live better and healthier lives. livongo has developed a new approach for diabetes management that combines the latest technology with coaching.
As at 30 June 2018, Kinnevik carried net debt of SEK 2.9bn, corresponding to a leverage of 3% of portfolio value.
Kinnevik's and its investee companies' respective AGMs resolved on the below dividends to be paid for fscal year 2017:
| Investee company | Dividend Per Share | Amount (SEKm) |
|---|---|---|
| Millicom | USD 2.64 | 8821 |
| Tele2 | SEK 4.00 | 610 |
| Com Hem | SEK 6.00 | 203 |
| MTG | SEK 12.50 | 169 |
| Total Dividends Received | 1 864 | |
| of which received by 30 June 2018 | 1 423 | |
| Ordinary Dividend Paid | SEK 8.25 | 2 270 |
1 Based on a USD/SEK exchange rate of 8.83
During the frst half of 2018, Kinnevik received dividends from Tele2 and MTG, and half of the dividends resolved by Com Hem and Millicom. The Com Hem share started trading without the right to receive the second half of the dividend on 29 June, and this dividend was paid on 5 July. Millicom will pay the second half of its dividend on 14 November 2018.
| Investee company (SEKm) | Q2 2018 |
H1 2018 |
|---|---|---|
| Livongo | 345 | 345 |
| Cedar | 141 | 141 |
| Babylon | 118 | 118 |
| Budbee | 80 | 80 |
| Pleo | 67 | 67 |
| Other | 38 | 59 |
| Investments | 789 | 810 |
| Other | 89 | 101 |
| Divestments | 89 | 101 |
| Net Investments / (Divestments) | 700 | 709 |
Kinnevik's objective is to generate a long term total return to our shareholders in excess of our cost of capital. We aim to deliver an annual total shareholder return of 12-15% over the business cycle.
Given the nature of Kinnevik's investments, our goal is to carry low leverage, not exceeding 10% of portfolio value.
Kinnevik aims to pay an annual dividend growing in line with dividends received from our investee companies and the cash fow generated from our investment activities.
Kinnevik will make share buybacks when our shares trade at a signifcant discount to their intrinsic value, as perceived by Kinnevik, and the company has signifcant net cash (taking into consideration its dividend expectations, net investment plan and operating cost).
An Extraordinary General Meeting in Kinnevik on 16 July resolved to distribute Kinnevik's shares in MTG to its shareholders in order to facilitate the European Commission's clearance of the proposed merger of Tele2 and Com Hem.
The distribution is expected to take place on 14 August and the expected record date is 10 August.
Additional information about the distribution is available on Kinnevik's website under the heading "General Meetings".
Total shareholder return is calculated on the basis of shareholders reinvesting all cash dividends, dividends in kind and mandatory share redemption proceeds into the Kinnevik share.
| Change in fair value and dividends received |
||||||
|---|---|---|---|---|---|---|
| Investment (SEKm) | Kinnevik's Ownership |
Net Invested Amount |
Fair Value 30 jun 2018 |
Apr-jun 2018 |
jan-jun 2018 |
Valuation Method |
| Global Fashion Group 1,2 | 35% | 5 658 | 5 047 | -253 | -192 | Revenue multiple |
| Westwing 2 | 17% | 419 | 508 | 25 | 29 | Revenue multiple |
| Quikr | 17% | 879 | 1 575 | 149 | 217 | DCF |
| Saltside | 61% | 195 | 199 | 3 | 4 | DCF |
| Other 1 | Mixed | 562 | 282 | -1 | 3 | Mixed |
| Total E-commerce & Marketplaces | 7 713 | 7 611 | -77 | 61 | ||
| Total TMT | Mixed | 1 096 | 273 | - | -28 | Mixed |
| Bayport 3 | 22% | 467 | 1 182 | 75 | 100 | Latest transaction |
| Betterment | 16% | 1 065 | 1 163 | 74 | 99 | Latest transaction |
| Milvik/BIMA | 33% | 257 | 881 | 56 | 75 | Latest transaction |
| Other | Mixed | 180 | 220 | 10 | 22 | Mixed |
| Total Financial Services | 1 969 | 3 446 | 215 | 296 | ||
| Babylon | 20% | 426 | 518 | 3 | 25 | Latest transaction |
| Livongo | 8% | 458 | 584 | 36 | 134 | Latest transaction |
| Cedar | 8% | 141 | 143 | 2 | 2 | Latest transaction |
| Total Healthcare | 1 025 | 1 245 | 41 | 161 | ||
| Other | Mixed | 190 | 34 | 35 | 42 | Mixed |
| Total unlisted Financial Assets | 11 992 | 12 609 | 214 | 532 |
1 Net invested amounts include SEK 1.0bn in share distributions received from Rocket Internet.
2 Ownership not adjusted for employee stock option plans and employee equity at subsidiary level.
3 Ownership on a fully diluted as converted basis.
At the end of June, the fair value of Kinnevik's unlisted fnancial assets amounted to a total of SEK 12,609m, to be compared with an accumulated invested amount (net after dividends received) of SEK 11,992m. The change in fair value, plus dividends received, amounted to SEK 214m in the quarter, as specifed in the table on the previous page.
Kinnevik's unlisted investee companies adopt different fnancing structures, and may at times issue shares with liquidation preference rights. Liquidation preferences determine how proceeds from a liquidity event are allocated between shareholders. This allocation may become increasingly complex as a company raises several funding rounds at different valuations. As Kinnevik's participation often varies between funding rounds, Kinnevik's share of proceeds may signifcantly deviate from its percentage ownership of the investee company's issued equity. Accordingly, an increase or decrease in value of an investee company's equity where liquidation preferences are applicable may result in a disproportionate increase or decrease in the fair value of Kinnevik's shareholding in that investee company. An unlisted investee company's transition into a publicly listed company may also affect the value of Kinnevik's shareholding due to the dismantling of such provisions.
The fair value of Kinnevik's 35 percent shareholding in global Fashion group ("gFg") amounts to SEK 5,047m as at 30 June 2018, based on a total value of GFG's fully diluted equity of EUR 1.4bn. The valuation of GFG implies an average multiple of 1.1x the company's last twelve months' net revenues as at 31 March 2018. The implied average multiple corresponds to a 47 percent discount to a group of listed and proftable developed market fashion e-commerce peers, and discounts vary between GFG's different regional businesses. The peer group was updated in Q1 2018 and includes Asos, Boozt and Zalando. The implied discount not only refects differences in historic growth and proftability, but also Kinnevik's assessment of equity risk premiums across GFG's partly emerging market focused footprint as may be referenced from a broader set of publicly traded emerging market companies.
The fair value of Kinnevik's 17 percent shareholding in westwing amounts to SEK 508m as at 30 June 2018, based on a total value of Westwing's fully diluted equity of EUR 284m, treating outstanding warrants as debt. The valuation of Westwing applies a multiple of 1.3x the company's last twelve months' net revenues as at 31 March 2018. The applied multiple corresponds to a 25 percent discount to a group of listed e-commerce peers, which refects differences in historic growth and proftability.
The fair value of Kinnevik's 17 percent shareholding in Quikr amounts to SEK 1,575m as at 30 June 2018, based on a total value of Quikr's fully diluted equity of USD 1,027m. The valuation of Quikr is based on a discounted cash fow analysis. A number of all-stock transactions have been concluded at an approximate 56 percent premium to the USD 1,027m valuation, but due to the lack of a signifcant cash element in each of these transactions they are not considered as suffciently robust to be used as basis for the assessment of the fair value of Kinnevik's shareholding.
The fair value of Kinnevik's 61 percent shareholding in Saltside amounts to SEK 199m as at 30 June 2018. The valuation of Saltside is based on a discounted cash fow analysis.
The fair value of Kinnevik's 22 percent shareholding in Bayport amounts to SEK 1,182m as at 30 June 2018, based on a total value of Bayport's fully diluted equity of USD 608m. The valuation of Bayport is based on the valuation applied in a funding round during the third quarter of 2017.
The fair value of Kinnevik's 16 percent shareholding in Betterment amounts to SEK 1,163m as at 30 June 2018, based on a total value of Betterment's fully diluted equity of USD 800m. The valuation of Betterment is based on the valuation applied in a funding round during the third quarter of 2017.
The fair value of Kinnevik's 33 percent shareholding in Bima amounts to SEK 881m as at 30 June 2018, based on a total value of Bima's fully diluted equity of approximately USD 290m. The valuation of Bima is based on the valuation applied in a funding round in the fourth quarter of 2017.
The fair value of Kinnevik's 20 percent shareholding and other interest in Babylon amounts to SEK 518m as at 30 June 2018. The valuation of Babylon's equity is based on the valuation applied in a funding round during the second quarter of 2017.
The fair value of Kinnevik's 8 percent shareholding in livongo amounts to SEK 584m as at 30 June 2018. The valuation of Livongo is based on the valuation applied in a funding round during the second quarter of 2018.
The fair value of Kinnevik's 8 percent shareholding in cedar amounts to SEK 143m as at 30 June 2018. The valuation of Cedar is based on the valuation applied in a funding round during the second quarter of 2018.
| seK m | note | 2018 1 apr 30 Jun |
2017 1 apr 30 Jun |
2018 1 Jan 30 Jun |
2017 1 Jan 30 Jun |
2017 Full year |
|---|---|---|---|---|---|---|
| Change in fair value of fnancial assets | 4 | 4 195 | 2 841 | 6 755 | 9 934 | 18 395 |
| Dividends received | 5 | 1 220 | 1 842 | 1 438 | 1 842 | 2 260 |
| Administration costs | -57 | -54 | -129 | -101 | -245 | |
| Other operating income | 6 | 5 | 14 | 10 | 41 | |
| Other operating costs | -5 | 0 | -5 | 0 | 0 | |
| 2SHUDWLQJ SURğWORVV | 5 359 | 4 634 | 8 073 | 11 685 | 20 451 | |
| Financial net | -15 | -52 | -26 | -53 | -90 | |
| 3URğWORVV DIWHU ğQDQFLDO QHW | 5 344 | 4 582 | 8 047 | 11 632 | 20 361 | |
| Tax | - | - | - | - | -2 | |
| 1HW SURğWORVV IRU WKH SHULRG | 5 344 | 4 582 | 8 047 | 11 632 | 20 359 | |
| Net proft/loss per share before dilution Net proft/loss per share after dilution |
19.42 19.39 |
16.65 16.63 |
29.25 29.20 |
42.28 42.23 |
74.00 73.90 |
|
| 2WKHU FRPSUHKHQVLYH LQFRPH | ||||||
| Cash fow hedging, gains/losses during the period | -7 | 14 | -10 | 16 | 29 | |
| 7RWDO RWKHU FRPSUHKHQVLYH LQFRPH IRU WKH SHULRG | -7 | 14 | -10 | 16 | 29 | |
| 7RWDO FRPSUHKHQVLYH LQFRPH IRU WKH SHULRG | 5 337 | 4 596 | 8 037 | 11 648 | 20 388 | |
| Outstanding shares at the end of the period Average number of shares before dilution |
275 130 169 275 123 164 |
275 115 735 275 115 735 |
275 130 169 275 120 829 |
275 115 735 275 115 735 |
275 115 735 275 115 947 |
|
| Average number of shares after dilution | 275 572 564 | 275 487 460 | 275 571 468 | 275 451 052 | 275 492 517 |
The change in fair value of fnancial assets including dividends received amounted to a proft of SEK 5,415m (4,683) for the second quarter of which a proft of SEK 5,201m (4,720) was related to listed holdings and a proft of SEK 214m (loss of 37) was related to unlisted holdings. See note 4 and 5 for further details. Improved fnancial net is due to lower borrowing costs and exchange differences.
The change in fair value of fnancial assets including dividends received amounted to a proft of SEK 8,193m (11,776) for the frst six months of the year of which a proft of SEK 7,661m (12,033) was related to listed holdings and a proft of SEK 532m (loss of 257) was related to unlisted holdings. See note 4 och 5 for further details.
| seK m | note | 2018 1 apr 30 Jun |
2017 1 apr 30 Jun |
2018 1 Jan 30 Jun |
2017 1 Jan 30 Jun |
2017 Full year |
|---|---|---|---|---|---|---|
| Dividends received | 5 | 1 220 | 1 842 | 1 337 | 1 842 | 2 260 |
| Cash fow from operations | -53 | -41 | -157 | -108 | -201 | |
| &DVK ĠRZ IURP RSHUDWLRQV EHIRUH LQWHUHVW QHW DQG LQFRPH WD[HV | 1 167 | 1 801 | 1 180 | 1 734 | 2 059 | |
| Interest, received | 0 | 3 | 0 | 7 | 10 | |
| Interest, paid | -13 | -30 | -29 | -41 | -76 | |
| &DVK ĠRZ IURP RSHUDWLRQV | 1 154 | 1 774 | 1 151 | 1 700 | 1 993 | |
| Investments in fnancial assets | -789 | -3 894 | -810 | -4 112 | -4 843 | |
| Sale of shares and other securities | 48 | 3 090 | 60 | 5 197 | 5 304 | |
| &DVK ĠRZ IURP LQYHVWLQJ DFWLYLWLHV | -741 | -804 | -750 | 1 085 | 461 | |
| Amortization | - | -348 | - | -456 | -1 611 | |
| Borrowing | 200 | 2 350 | 200 | 2 935 | 2 833 | |
| Dividend paid to equity holders of the Parent company | -2 270 | -2 201 | -2 270 | -2 201 | -2 201 | |
| &DVK ĠRZ IURP ğQDQFLQJ DFWLYLWLHV | -2 070 | -199 | -2 070 | 278 | -979 | |
| &DVK ĠRZ IRU WKH SHULRG | -1 657 | 771 | -1 669 | 3 063 | 1 475 | |
| &DVK DQG VKRUW WHUP LQYHVWPHQWV RSHQLQJ EDODQFH | 1 786 | 2 615 | 1 798 | 323 | 323 | |
| &DVK DQG VKRUW WHUP LQYHVWPHQWV FORVLQJ EDODQFH | 129 | 3 386 | 129 | 3 386 | 1 798 | |
| supplementary cash FloW inFormation | ||||||
| Investments in fnancial assets | 4 | -789 | -3 894 | -810 | -4 089 | -4 774 |
| Prior period investments, paid in current period | - | - | - | -23 | -69 | |
| &DVK ĠRZ IURP LQYHVWPHQWV LQ ğQDQFLDO DVVHWV | -789 | -3 894 | -810 | -4 112 | -4 843 |
| seK m | note | 2018 30 Jun |
2017 30 Jun |
2017 1 'HF |
|---|---|---|---|---|
| assets | ||||
| )L[HG DVVHWV | ||||
| Financial assets accounted at fair value through proft and loss | 4 | 99 181 | 82 677 | 91 717 |
| Tangible fxed assets | 55 | 61 | 58 | |
| Other fxed assets | 2 | 6 | 3 | |
| 7RWDO ğ[HG DVVHWV | 99 238 | 82 744 | 91 778 | |
| Other current assets | 195 | 26 | 46 | |
| Short term investments | - | 2 025 | 1 750 | |
| Cash and cash equivalents | 129 | 1 361 | 48 | |
| total assets | 99 562 | 86 156 | 93 622 | |
| shareholders' equity and liaBilities | ||||
| Shareholders' equity attributable to equityholders of the Parent Company | 96 409 | 81 887 | 90 633 | |
| Interest bearing liabilities, long term | 2 875 | 2 867 | 2 863 | |
| Interest bearing liabilities, short term | 200 | 1 253 | - | |
| Non interest bearing liabilities | 78 | 149 | 126 | |
| total equity and liaBilities | 99 562 | 86 156 | 93 622 |
| ratio | note | 2018 30 Jun |
2017 30 Jun |
2017 1 'HF |
|---|---|---|---|---|
| Debt/equity ratio | 0.03 | 0.05 | 0.03 | |
| Equity ratio | 97% | 95% | 97% | |
| Net cash/(Net debt) for the Group, including net loans to investee companies |
6 | -2 751 | -690 | 1 062 |
| Leverage | 3% | 1% | 1% |
| seK m | 2018 1 Jan 30 Jun |
2017 1 Jan 30 Jun |
2017 Full year |
|---|---|---|---|
| 2SHQLQJ EDODQFH | 90 633 | 72 434 | 72 434 |
| Proft for the period | 8 047 | 11 632 | 20 359 |
| Other comprehensive income | -10 | 16 | 29 |
| 7RWDO FRPSUHKHQVLYH LQFRPH IRU WKH SHULRG | 8 037 | 11 648 | 20 388 |
| 7UDQVDFWLRQV ZLWK VKDUHKROGHUV | |||
| Effect of employee share saving programme | 9 | 6 | 12 |
| Cash dividend | -2 270 | -2 201 | -2 201 |
| &ORVLQJ EDODQFH IRU WKH SHULRG | 96 409 | 81 887 | 90 633 |
notes For the group
The consolidated fnancial 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. Information in accordance with IAS 34, Interim Financial Reporting is provided in the notes as well as on other places in the interim report.
From 1 January 2018 Kinnevik apply IFRS 9 Financial Instruments, which replaces IAS 39 Financial Instruments: Recognition and Measurement and introduce requirements for the classifcation and measurement, impairment, derecognition and requirements for general hedge accounting. Classifcation and measurement under IFRS 9 is based on the entity's business model for managing the fnancial asset and the characteristics of the contractual cash fows of the asset. The change does not cause any transition effects for Kinnevik.
The accounting principles and calculation methods applied in this report are the same as those described in the 2017 Annual Report.
Kinnevik has a model for risk management, which aims to identify, control and reduce risks. The identifed risks and how they are managed are reported to the Kinnevik Board of Directors on a quarterly basis.
Kinnevik's fnancing and management of fnancial risks is centralised within Kinnevik's fnance function and is conducted on the basis of a fnance policy established by the Board of Directors. Kinnevik is exposed to fnancial risks mainly in the form of changes in the value of the stock portfolio, changes in currency and interest rates, and fnancing risks. Operational risks are managed within each company with an operating business. Kinnevik is also exposed to political risks since the companies in which Kinnevik has invested have substantial operations in less developed markets in Latin America, Sub-Saharan Africa and South East Asia.
For a more detailed description of Kinnevik's risks and uncertainties, as well as risk management, refer to Note 17 for the Group in the 2017 Annual Report.
Related party transactions for the period are of the same character as the transactions described in the 2017 Annual Report.
Kinnevik's unlisted holdings are valued using IFRS 13 and the International Private Equity and Venture Capital Valuation Guidelines, whereby a collective assessment is made to establish the valuation method that is most suitable for each individual holding. Firstly, it is considered whether any recent transactions have been made at arm's length in the relevant company. For new share issues, consideration is taken to if the newly issued shares have preferential rights, such as liquidation preferences to the company's assets senior to earlier issued shares. For companies where no or few recent arm's length transactions have been carried out, a valuation is conducted either by applying relevant multiples to the company's historical sales or profts, or by discounting future expected cash fows. When performing a valuation based on multiples, consideration is given to differences in size, historic growth, proftability and geographic exposure.
The valuation process for Kinnevik's unlisted holdings is led by a valuation team independently from the respective holding's investment manager. Accuracy and reliability of fnancial information used in the valuations is ensured through continuous contacts with the management of each holding and regular reviews of their accounts. Information and opinions on applicable valuation methods are obtained periodically from investment managers and well-renowned investment banks and audit frms. The valuations are discussed with the CFO and CEO after which a proposal is discussed with the Audit Committee and the external auditors. After their scrutiny and potential adjustments, the valuations are approved and included in Kinnevik's accounts.
Below is a summary of the valuation methods applied in the accounts as per 30 June 2018:
| company | summary |
|---|---|
| Global Fashion Group |
ƒ Sum-of-the-parts applying varying multiples on each region's last twelve months' net revenues ƒ Peer group includes Zalando, Asos and Boozt ƒ Implied average multiple of 1.1x, corresponding to an aggregate discount of 47% ƒ Fully diluted equity value of EUR 1.4bn, liquidation preferences considered in valuing Kinnevik's shareholding |
| Westwing | ƒ Multiple on the company's last twelve months' net revenues ƒ Peer group includes Asos, Wayfair and Maisons du Monde ƒ Multiple of 1.3x, corresponding to a discount of 25% ƒ Fully diluted equity value of EUR 284m, with outstanding warrants treated as debt, liquidation preferences considered in valuing Kinnevik's shareholding |
| Quikr | ƒ Discounted cash fow analysis ƒ Fully diluted equity value of USD 1,027m |
| Saltside | ƒ Discounted cash fow analysis |
| Bayport | ƒ Latest transaction value from funding round during the third quarter of 2017 ƒ Fully diluted as-converted equity value of USD 608m |
| Betterment | ƒ Latest transaction value from funding round during the third quarter of 2017 ƒ Fully diluted equity value of USD 800m |
| Milvik/BIMA | ƒ Latest transaction value from funding round during the fourth quarter of 2017 ƒ Fully diluted equity value of approximately USD 290m |
| Babylon | ƒ Latest transaction value from funding round during the second quarter of 2017 |
| Livongo | ƒ Latest transaction value from funding round during the second quarter of 2018 |
| Cedar | ƒ Latest transaction value from funding round during the second quarter of 2018 |
For companies that are valued based on sales multiples (e.g. Global Fashion Group and Westwing ), an increase in the multiple by 10% would have increased estimated fair value by SEK 385m. Similarly, a decrease in the multiple by 10% would have decreased estimated fair value by SEK 316m.
When establishing the fair value of other fnancial instruments, methods that in every individual case are assumed to provide the best estimation of fair value have been used. For assets and liabilities maturing within one year, a nominal value adjusted for interest payments and premiums is assumed to provide a good approximation to fair value.
Information is provided in this note per class of fnancial instruments that are valued at fair value in the balance sheet, distributed in the levels stated below:
Level 1: Fair value established based on listed prices in an active market for the same instrument.
Level 2: Fair value established based on valuation techniques with observable market data, either directly (as a price) or indirectly (derived from a price) and not included in Level 1.
Level 3: Fair value established using valuation techniques, with signifcant input from data that is not observable in the market.
| &KDQJH LQ IDLU YDOXH RI ğQDQFLDO DVVHWV | 2018 1 apr 30 Jun |
2017 1 apr 30 Jun |
2018 1 Jan 30 Jun |
2017 1 Jan 30 Jun |
2017 Full year |
|---|---|---|---|---|---|
| Black Earth Farming | - | 8 | - | 50 | -309 |
| Com Hem | 332 | 227 | 695 | 227 | 496 |
| Home24 | 666 | - | 666 | - | - |
| Millicom | -1 796 | -117 | -1 059 | 3 969 | 6 152 |
| MTG | 494 | -123 | 399 | 277 | 995 |
| Qliro Group | 49 | 115 | -198 | 298 | 401 |
| Rocket Internet | - | 442 | - | 81 | 81 |
| Seamless | - | -4 | - | 1 | 1 |
| SDS | -2 | - | -4 | - | -13 |
| Tele2 | 811 | 442 | 671 | 2 309 | 4 184 |
| Zalando | 3 427 | 1 889 | 5 068 | 2 979 | 6 851 |
| 7RWDO /LVWHG KROGLQJV | 3 981 | 2 878 | 6 238 | 10 191 | 18 839 |
| Babylon | 3 | 10 | 25 | 73 | 77 |
| Bayport | 75 | -65 | 100 | -86 | -119 |
| Betterment | 74 | -32 | 99 | -42 | -53 |
| Cedar | 2 | - | 2 | - | - |
| Global Fashion Group | -253 | -249 | -192 | -453 | -402 |
| Home24 | - | 68 | 81 | 52 | 86 |
| Lazada | - | 273 | - | 261 | 261 |
| Livongo | 36 | -7 | 134 | -7 | -8 |
| Milvik/BIMA | 56 | -24 | 75 | 4 | 298 |
| Quikr | 149 | -39 | 217 | -55 | -177 |
| Westwing | 25 | 6 | 29 | 10 | 50 |
| Other* | 47 | 22 | -53 | -14 | -457 |
| 7RWDO 8QOLVWHG KROGLQJV | 214 | -37 | 517 | -257 | -444 |
| total | 4 195 | 2 841 | 6 755 | 9 934 | 18 395 |
* Other includes i.a. Budbee, Enuygun, Iroko, Linio, Pleo and Zanui.
notes For the group
| 30 June 2018 | ||||||
|---|---|---|---|---|---|---|
| %RRN YDOXH RI ğQDQFLDO DVVHWV | &ODVV \$ VKDUHV |
&ODVV % VKDUHV |
&DSLWDO 9RWHV |
2018 30 Jun |
2017 30 Jun |
2017 1 'HF |
| Black Earth Farming | 51 811 828 | - | - | - | 358 | - |
| Com Hem | 33 911 671 | - | 19.2/19.2 | 4 921 | 3 957 | 4 226 |
| Home24 | 3 111 953 | - | 12.5/12.5 | 965 | - | - |
| Millicom | 37 835 438 | - | 37.5/37.5 | 19 883 | 18 759 | 20 942 |
| MTG | 4 461 691 | 9 042 165 | 20.2/48.0 | 5 045 | 3 927 | 4 645 |
| Qliro Group | 42 613 642 | - | 28.5/28.5 | 568 | 665 | 767 |
| SDS | 587 722 | - | 8.5/8.5 | 4 | - | 8 |
| Tele2 | 20 733 965 | 131 699 187 | 30.3/47.9 | 16 021 | 13 475 | 15 350 |
| Zalando | 78 427 800 | - | 31.9/31.9 | 39 165 | 30 224 | 34 097 |
| 7RWDO /LVWHG +ROGLQJV | 86 572 | 71 365 | 80 035 | |||
| Babylon | 19.6/19.6 | 518 | 371 | 375 | ||
| Bayport | 21.8/21.8 | 1 182 | 1 115 | 1 082 | ||
| Betterment | 16.3/16.3 | 1 163 | 548 | 1 064 | ||
| Cedar | 7.5/7.5 | 143 | - | - | ||
| Global Fashion Group | 35.4/35.4 | 5 047 | 5 188 | 5 239 | ||
| Home24 | - | - | 184 | 218 | ||
| Livongo | 8.0/8.0 | 584 | 105 | 105 | ||
| Milvik/BIMA | 33.4/33.4 | 881 | 406 | 806 | ||
| Quikr | 17.1/17.1 | 1 575 | 1 480 | 1 358 | ||
| Saltside | 60.8/60.8 | 199 | 197 | 195 | ||
| Westwing | 16.5/16.5 | 508 | 439 | 479 | ||
| Other* | - | 809 | 1 279 | 761 | ||
| 7RWDO 8QOLVWHG +ROGLQJV | 12 609 | 11 312 | 11 682 | |||
| total | 99 181 | 82 677 | 91 717 |
* Other includes i.a. Budbee, Enuygun, Iroko, Linio, Pleo and Zanui.
| total | 789 | 3 894 | 810 | 4 089 | 4 774 |
|---|---|---|---|---|---|
| 7RWDO 8QOLVWHG +ROGLQJV | 789 | 164 | 810 | 359 | 1 023 |
| Other | 185 | 56 | 206 | 65 | 95 |
| Livongo | 345 | - | 345 | 112 | 113 |
| Home24 | - | 38 | - | 38 | 38 |
| Cedar | 141 | - | 141 | - | - |
| Milvik/BIMA | - | - | - | - | 106 |
| Betterment | - | - | - | - | 527 |
| Babylon | 118 | 70 | 118 | 144 | 144 |
| 7RWDO /LVWHG +ROGLQJV | - | 3 730 | - | 3 730 | 3 751 |
| SDS | - | - | - | - | 21 |
| Com Hem | - | 3 730 | - | 3 730 | 3 730 |
| ,QYHVWPHQWV LQ ğQDQFLDO DVVHWV | 2018 1 apr 30 Jun |
2017 1 apr 30 Jun |
2018 1 Jan 30 Jun |
2017 1 Jan 30 Jun |
2017 Full year |
| &KDQJHV LQ XQOLVWHG DVVHWV OHYHO | 2018 1 apr 30 Jun |
2017 1 apr 30 Jun |
2018 1 Jan 30 Jun |
2017 1 Jan 30 Jun |
2017 Full year |
|---|---|---|---|---|---|
| Opening balance | 11 994 | 12 154 | 11 682 | 12 291 | 12 291 |
| Investments | 789 | 164 | 810 | 359 | 1 023 |
| Disposals / Exit proceeds | -89 | -969 | -101 | -1 081 | -1 188 |
| Reclassifcation | -299 | - | -299 | - | - |
| Change in fair value | 214 | -37 | 517 | -257 | -444 |
| &ORVLQJ EDODQFH | 12 609 | 11 312 | 12 609 | 11 312 | 11 682 |
| 2018 1 apr 30 Jun |
2017 1 apr 30 Jun |
2018 1 Jan 30 Jun |
2017 1 Jan 30 Jun |
2017 Full year |
|
|---|---|---|---|---|---|
| Millicom | 441 | 883 | 441 | 883 | 883 |
| Tele2 | 610 | 797 | 610 | 797 | 797 |
| MTG | 169 | 162 | 169 | 162 | 162 |
| Com Hem | - | - | 203 | - | 68 |
| Black Earth Farming | - | - | - | - | 350 |
| Other | - | - | 15 | - | - |
| 7RWDO GLYLGHQGV UHFHLYHG | 1 220 | 1 842 | 1 438 | 1 842 | 2 260 |
| Of which cash dividends | 1 220 | 1 842 | 1 438 1 | 1 842 | 2 260 |
| Of which ordinary cash dividends | 1 220 | 1 842 | 1 423 | 1 842 | 1 910 |
1 Of which SEK 101m was received in Q3 2018
Kinnevik's total interest bearing assets amounted to SEK 283m as at 30 June 2018. The total amount of interest bearing liabilities was SEK 3,075m and receivables for unpaid divestments was SEK 41m. Kinnevik was in a net debt position of SEK 2,751m as at 30 June 2018, including loans to investee companies (net debt SEK 1,062m as at 31 December 2017). Net debt excluding loans to portfolio companies amounted to SEK 2,902m.
Kinnevik's total credit facilities (including issued bonds) amounted to SEK 8,980m as at 30 June 2018 whereof SEK 6,000m related to unutilised revolving credit facilities and SEK 2,850m related to bonds.
The Group's available liquidity, including short term investments and available unutilized credit facilities, totalled SEK 6,213m as at 30 June 2018 (SEK 7,995m as at 31 December 2017).
| seKm | 2018 30 Jun |
2017 30 Jun |
2017 1 'HF |
|---|---|---|---|
| ,QWHUHVW EHDULQJ DVVHWV | |||
| Loans to investee companies | 151 | 85 | - |
| Short term investments | - | 2 025 | 1 750 |
| Cash and cash equivalents | 129 | 1 361 | 48 |
| Other interest bearing assets | 3 | 6 | 3 |
| 7RWDO LQWHUHVW EHDULQJ DVVHWV | 283 | 3 477 | 1 801 |
| ,QWHUHVW EHDULQJ ORQJ WHUP OLDELOLWLHV | |||
| Corporate bonds | 2 850 | 2 850 | 2 850 |
| Accrued borrowing cost | -16 | -14 | -17 |
| Other interest bearing liabilities | 41 | 31 | 30 |
| 2 875 | 2 867 | 2 863 | |
| ,QWHUHVW EHDULQJ VKRUW WHUP OLDELOLWLHV | |||
| Debt to credit institutions | - | 9 | - |
| Corporate bonds | - | 744 | - |
| Commercial papers | 200 | 500 | - |
| 200 | 1 253 | - | |
| 7RWDO LQWHUHVW EHDULQJ OLDELOLWLHV | 3 075 | 4 120 | 2 863 |
| Net interest bearing liabilities (-) / assets (+) | -2 792 | -643 | -1 062 |
| Receivable/debt, unpaid investments/divestments | 41 | -47 | - |
| 1HW FDVK1HW GHEW IRU WKH *URXS LQFOXGLQJ QHW ORDQV WR LQYHVWHH FRPSDQLHV | -2 751 | -690 | -1 062 |
The outstanding loans carry an interest rate of Stibor or similar base rate with an average margin of 0.8%. All bank loans have variable interest rates (up to 3 months) while fnancing from the capital markets vary between 1 to 12 months for the loans under the commercial paper program and 5 years fxed for the outstanding bond (as per date of issue).
As at 30 June 2018, the average remaining tenor was 3.4 years for all credit facilities including the bonds. As at 30 June 2018, Kinnevik had not provided any security for any of its outstanding loans.
| seK m | 2018 1 apr 30 Jun |
2017 1 apr 30 Jun |
2018 1 Jan 30 Jun |
2017 1 Jan 30 Jun |
2017 Full year |
|---|---|---|---|---|---|
| Administration costs | -54 | -65 | -121 | -95 | -235 |
| Other operating income and costs | -1 | 3 | 2 | 3 | 5 |
| 2SHUDWLQJ ORVV | -55 | -62 | -119 | -92 | -230 |
| Dividends received, external | 690 | 1 007 | 705 | 1 007 | 1 007 |
| Result from associated companies | 35 | - | 23 | - | - |
| Result from subsidiaries | 2 214 | 8 466 | 2 183 | 8 466 | 8 261 |
| Financial net | -11 | -24 | -22 | -40 | -23 |
| 3URğWORVV DIWHU ğQDQFLDO LWHPV | 2 873 | 9 386 | 2 770 | 9 340 | 9 015 |
| Group contribution | - | - | - | - | -109 |
| 3URğWORVV EHIRUH WD[HV | 2 873 | 9 386 | 2 770 | 9 340 | 8 906 |
| Taxes | - | - | - | - | - |
| 1HW SURğWORVV IRU WKH SHULRG | 2 873 | 9 386 | 2 770 | 9 340 | 8 906 |
| 7RWDO FRPSUHKHQVLYH LQFRPH IRU WKH SHULRG | 2 873 | 9 386 | 2 770 | 9 340 | 8 906 |
| seK m | 2018 30 Jun |
2017 30 Jun |
2017 1 'HF |
|---|---|---|---|
| assets | |||
| Tangible fxed assets | 3 | 4 | 3 |
| Financial fxed assets | 53 945 | 52 062 | 52 368 |
| Short term receivables | 14 | 15 | 33 |
| Short term investments | - | 2 025 | 1 750 |
| Cash and cash equivalents | 116 | 400 | 39 |
| total assets | 54 078 | 54 506 | 54 193 |
| shareholders' equity and liaBilities | |||
| Equity | 49 334 | 49 253 | 48 825 |
| Provisions | 26 | 27 | 26 |
| Long term interest bearing liabilities | 4 458 | 3 899 | 5 117 |
| Short term interest bearing liabilities | 200 | 1 244 | - |
| Other short term liabilities | 60 | 83 | 225 |
| total shareholders' equity and liaBlities | 54 078 | 54 506 | 54 193 |
The Parent Company's liquidity, including short-term investments and unutilized credit facilities, totalled SEK 6,046m (8,055) at 30 June 2018. The Parent Company's interest bearing external liabilities amounted to SEK 3,035m (4,103) on the same date. Investments in tangible fxed assets amounted to SEK 0m (0) during the period.
Distribution by class of shares on 30 June 2018 was as follow:
| 1XPEHU RI VKDUHV | 1XPEHU RI YRWHV | 3DU YDOXH 6(. 000V |
|
|---|---|---|---|
| Outstanding Class A shares, 10 votes each | 33 755 432 | 337 554 320 | 3 375 |
| Outstanding Class B shares, 1 vote each | 241 374 737 | 241 374 737 | 24 137 |
| Class B shares in own custody | 536 469 | 536 469 | 54 |
| 5HJLVWHUHG QXPEHU RI VKDUHV | 275 666 638 | 579 465 526 | 27 567 |
The total number of votes for outstanding shares amounted at 30 June 2018 to 578,929,057 excluding 536,469 class B treasury shares.
On 21 May 2018, the Annual General Meeting of Kinnevik resolved that holders of class A shares should be entitled to reclassify their class A shares into class B shares. Reclassifcation was made possible between 4 June 2018 up to and including 18 June 2018. During this period, 7,401,712 class A shares were requested to be reclassifed into class B shares.
In May, 200,000 class C shares were issued and repurchased and reclassifed into class B shares held in treasury in order to ensure delivery of shares to participants in outstanding long-term incentive programs.
During the period 14,010 class B shares were delivered to participants in the share based plan from 2015.
The Board has authorization to repurchase up to a maximum of 10% of all shares in the Company over 12 months, ending at the AGM of 2018. There are no convertibles or warrants in issue.
Kinnevik presents some performance measures in the interim report that are not defned by IFRS. Kinnevik believes that these performance measures adds valuable information to the company's investors and the company's management since they enable assessment of the Kinnevik's and its portfolio companies performance and position. Since all companies do not calculate their performance measures in the same manner, these are not always comparable with similar measures used by other companies. Such performance measures shall therefore not be used in replacement of measures defned by IFRS.
Alternative performance measures in Kinnevik's interim report include:
| Active customers | Number of customers having made at least one order within the last 12 months |
|---|---|
| Debt/equity ratio | Interest-bearing liabilities including interest-bearing provisions divided by shareholders' equity |
| Equity ratio | Shareholders' equity including non-controlling interest as percentage of total assets |
| Gross merchandise value, GMV | Total value of all sale transactions during the period, including taxes but excluding ship ping costs |
| Internal rate of return, IRR | The annual rate of return calculated in quarterly intervals on a SEK basis that renders a zero net present value of (i) fair values at the beginning and end of the respective meas urement period, (ii) investments and divestments, and (iii) cash dividends and dividends in kind |
| Investments | All investments in listed and unlisted fnancial assets, including loans to portfolio com panies |
| Leverage | Net debt as a percentage of portfolio value |
| Net asset value, NAV | Net value of all assets on the balance sheet, equal to the shareholders' equity |
| Net cash/(net debt) | Interest bearing receivables (excluding net outstanding receivables relating to portfolio companies), short-term investments and cash and cash equivalents less interest-bearing liabilities including interest-bearing provisions and unpaid investments/divestments |
| Net investments | The net of all investments and divestments in listed and unlisted fnancial assets |
| Net merchandise value, NMV | Gross merchandise value after actual and provisioned returns and rejections |
| Portfolio value | Value of all assets on the balance sheet, less cash and cash equivalents |
| Total shareholder return, TSR | Annualized total return of the Kinnevik B share on the basis of shareholders reinvesting all cash dividends, dividends in kind, and mandatory share redemption proceeds into the Kinnevik B share, before tax, on each respective ex-dividend date. The value of Kinnevik B shares held at the end of the measurement period is divided by the price of the Kinnevik B share at the beginning of the period, and the resulting total return is then recalculated as an annual rate |
| Dates for 2018 reporting: 25 October | Interim Report January-September 2018 |
|---|---|
| February 2019 Year end release 2018 |
The Board of Directors and the Chief Executive Offcer certify that this undersigned six month interim report provides a true and fair overview of the Parent Company and Group's operations, fnancial position and performance for the period, and describes the material risks and uncertainties facing the Parent Company and other companies in the Group.
Stockholm, 20 July 2018
Dame Amelia Fawcett Chairman of the Board
Erik Mitteregger Member of the Board
Charlotte Strömberg Member of the Board
Henrik Poulsen Deputy Chairman of the Board
Mario Queiroz Member of the Board
Georgi Ganev Chief Executive Offcer
Wilhelm Klingspor Member of the Board
Cristina Stenbeck Member of the Board
We have reviewed the interim report for Kinnevik AB (Publ) for the period January 1 - June 30, 2018. The Board of Directors and the President are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
We conducted our review in accordance with the International Standard on Review Engagements (ISRE) 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 fnancial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially less in scope than an audit conducted in accordance with ISA and other generally accepted auditing practices.
The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all signifcant matters that might be identifed in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not, in all material respects, prepared for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act.
Stockholm 20 July 2018
Deloitte AB
Jan Berntsson Authorized Public Accountant
This information is information that Kinnevik AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at 07.00 CET on 20 July 2018.
For further information, visit www.kinnevik.com or contact:
Torun Litzén, Director Corporate Communications Phone +46 (0)70 762 00 50 Email: [email protected]
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