Kinnevik — Interim / Quarterly Report 2019

Feb 6, 2020

YEAR-END RELEASE 2019

"2019 was characterized by strong performance in our large listed companies and high activity in our portfolio including new and follow-on investments in exciting growth companies. We ended the year with a strong balance sheet providing us with the foundation needed to execute on our strategy"

Georgi Ganev, CEO of Kinnevik

SEK 73.3BN (1)% NAV 31 DECEMBER 2019 CHANGE IN NAV Q/Q 40% 1 YEAR TSR 5 YEAR TSR 9%

2019: A YEAR OF PIVOTING OUR PORTFOLIO TOWARDS GROWTH

• Doubled down on our healthcare strategy by investing SEK 2.0bn into Livongo, Babylon, Cedar and VillageMD
• Built leadership position in Nordic online groceries by investing SEK 1.2bn into MatHem and Kolonial
• Distributed our entire SEK 16.5bn shareholding in Millicom to our shareholders, corresponding to SEK 60 per share
• Monetized a 5% stake in Zalando generating gross proceeds of SEK 5.9bn, with our retained shareholding amounting to SEK 30.8bn per end of 2019
• Amended our shareholder remuneration policy, ceasing to pay ordinary cash dividends in favor of paying out excess capital generated by our investment activities in the form of extraordinary dividends
• Full-year investments of SEK 4.6bn whereof SEK 1.6bn into two new growth companies and SEK 3.0bn in follow-on investments in the high-performing businesses of our unlisted and early growth portfolio, in line with our capital allocation framework
• Full-year divestments of SEK 6.2bn, whereof SEK 5.9bn from Zalando and SEK 128m from Westwing

FINANCIAL POSITION

• Net Asset Value of SEK 73.3bn (SEK 265 per share), down 1% in the quarter and up 31% in 2019, including dividends paid
• Net debt position of SEK 0.9bn, corresponding to a leverage of 1.3% of Portfolio Value by the end of 2019

ORGANIZATION

• Kinnevik has appointed Anna Stenberg as Chief People and Platform Offcer, a new role in Kinnevik's management team

SEKm		31 Dec 2019	30 Sep 2019	31 Dec 2018
Net Asset Value		73 295	92 010	70 503
Net Asset Value per Share, SEK		264.98	333.58	255.71
Share Price, SEK		228.60	258.70	213.00
Net Debt		-930	-825	-2 887
SEKm	Q4 2019	Q4 2018	FY 2019	FY 2018
Net Proft/Loss	-1 111	-8 280	21 572	-13 656
Net Proft/Loss per Share, SEK	-4.02	-30.04	78.02	-49.58
Change in Fair Value of Financial Assets	-1 914	-8 590	18 972	-15 184
Dividends Received	892	449	2 907	1 887
Dividends Paid	-17 650	-	-18 819	-6 497
Investments	43	392	4 566	2 731
Divestments	219	1 197	6 186	1 610

Chief Executive's Review

Dear Shareholders,

2019 was characterized by strong performance in our large listed companies and high activity in our portfolio including new and follow-on investments in exciting growth companies. We also supported the listing of two of our investee companies on the public markets. We accelerated our pivot towards growth by distributing Millicom to our VKDUHKROGHUV DQG FRPSOHWLQJ D VHOOGRZQ RI D SHUFHQW VWDNH LQ =DODQGR WR ğQDQFH RXU FRQWLQXHG LQYHVWPHQW PRmentum. We also decided to discontinue our ordinary cash dividend in favor of investing in growth companies and seeking to distribute excess capital in the form of extra dividends. We ended the year with a strong balance sheet providing us with the foundation needed to execute on our strategy presented at our Capital Markets Day in September.

OUR FOURTH QUARTER RESULTS

Kinnevik's Net Asset Value amounted to SEK 73.3bn, or SEK 265 per share, at the end of 2019, largely unchanged including dividends paid over the quarter, with positive share price development in Zalando and Livongo offset by weaker share performance in Tele2 after a very strong frst nine months of 2019. A downward revision of our carrying value of our Quikr investment negatively affected the value of our unlisted portfolio.

OUR LARGE LISTED COMPANIES

Zalando is our largest holding and a cornerstone of our growth portfolio. While the company's growth has been truly impressive since our frst investment almost 10 years ago, we believe Zalando will continue to beneft from its large market opportunity. In September we decreased our stake from 31 to 26 percent to maintain our own pace of investment into private growth companies. Zalando fts squarely with our strategy and we fully support the company's ambition to continue investing in growth to become the starting point for fashion.

Following its 2018 merger with Com Hem, Tele2 is the leading fxed-mobile operator in Sweden and the Baltics, providing connectivity and digital services in our Swedish home market. With its strong cash conversion, disciplined disposals of non-core operations, and focus on maintaining an effcient capital structure, Tele2's shareholder remuneration is fueling the growth in some of our less mature companies, while providing stability to our portfolio as a whole.

PIVOTING OUR PORTFOLIO TOWARDS GROWTH

In December, the distribution of our Millicom shareholding to our shareholders was concluded. This signifcant distribution of value to our investors reinforces our dedication to allocate a larger share of our portfolio to disruptive and technologyenabled growth and venture businesses. Through the distribution, the contribution of these businesses in Kinnevik's portfolio increased materially.

During 2019, we released some SEK 9.1bn from our more mature assets through divestments and dividends, corresponding to over 12 percent of the portfolio we entered the year with. About a third of the capital was re-invested into our existing portfolio and an additional SEK 1.6bn was invested into two new businesses – VillageMD and MatHem. With these transactions, we have improved and better balanced the makeup of our portfolio, both in terms of maturity profle and in terms of sector exposure.

DOUBLING DOWN IN HEALTHCARE

The healthcare industry is struggling to deliver accessible, effective and affordable care to all. We are optimistic that consumerization, new technology and innovation in payment models can yield better, more accessible and lower cost care. During the year, we doubled down in our healthcare portfolio with follow on investments in Babylon, Cedar and Livongo, and a new investment in VillageMD, a leading US based provider of primary care. At the end of the year, the value of our healthcare portfolio amounted to SEK 6.7bn, corresponding to 9 percent of our portfolio compared to 2 percent one year ago, and 0.5 percent the year before that. We are convinced that these companies are all only at the beginning of their growth journeys.

TAKING ON THE NORDIC FOOD MARKET

Another exciting investment theme in 2019 is our newly established leadership position in the Nordic online groceries market. Having been historically dominated by large offine players with strong market positions, the sector is on the verge of signifcant transformation. We started with an investment in the largest online grocer in Norway, Kolonial, in 2018 and in the beginning of 2019, we invested SEK 0.9bn into Mat-Hem, the Swedish market leader. During the year, we have materially strengthened MatHem's leadership team, including hiring a new CEO. The team is dedicated to improving the company's customer offering, drive effciency gains, and steer the company towards a strong, long-term growth trajectory.

FINANCIAL POSITION AND SHAREHOLDER REMUNERATION

We ended 2019 with a strong fnancial position and net debt of SEK 0.9bn or 1.3 percent of portfolio value, enabling us to carry out our capital re-allocation plan for the coming years. As communicated earlier in the year, rather than paying an ordinary dividend to our shareholders, going forward we will generate shareholder returns primarily through capital appreciation and will seek to return excess capital generated by our investment activities to shareholders through extra dividends. In this context, the dividend in kind of Millicom corresponded to SEK 60 per Kinnevik share when the distribution was completed in the beginning of December.

CONCLUDING REMARKS

With a portfolio consisting of a higher share of growth companies, fewer but larger new investments, signifcant capital deployed into the healthcare sector, and a bold step into the Nordic food space, we have executed on the priorities that I highlighted at the beginning of the year. Looking forward, we will maintain our pace of investment and deploy our capital systematically into the leading businesses of tomorrow. We expect to invest slightly less capital in 2020 than in 2019, but enough to continue our transformation. Thank you, our shareholders, for your continued support on this exciting journey.

Georgi Ganev Chief Executive Offcer

Kinnevik in summary

Kinnevik is an industry focused investment company with an entrepreneurial spirit. Our purpose is to make people's lives better by providing more and better choice. In partnership with talented founders and management teams we build challenger businesses that use disruptive technology to address material, everyday consumer needs. As active owners, we believe in delivering both shareholder and social value by building long-term sustainable businesses that contribute positively to society. We invest in Europe, with a focus on the Nordics, the US, and selectively in other markets. 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.

INVESTMENT ACTIVITY

PORTFOLIO COMPOSITION PORTFOLIO RETURN RATES

Financial Services Total Portfolio

Net Asset Value

SEKm	Fair Value 2019 31 Dec	Fair Value 2019 30 Sep	Fair Value 2018 31 Dec	Total Return 2019 1
Zalando	30 814	29 222	17 924	105%
Global Fashion Group	1 945	1 772	3 284	-50%
Quikr	941	1 703	1 643	-48%
MatHem	889	889	-	-
Kolonial	686	694	309	6%
TravelPerk	506	531	223	47%
Omio	468	492	443	6%
Qliro Group	296	409	391	-24%
Other 2	773	659	1 225	-27%
Total E-Commerce & Marketplaces	37 318	36 371	25 442	62%
Tele2	25 440	27 504	21 172	29%
Millicom	-	17 972	21 169	-17%
Other	-	8	164	-67%
Total TMT	25 440	45 484	42 505	6%
Betterment	1 315	1 274	1 153	14%
Bayport	1 110	1 232	1 172	-5%
Bima	936	1 010	873	-6%
Other 2	1 401	1 430	938	20%
Total Financial Services	4 762	4 946	4 136	6%
Babylon	2 808	2 950	500	221%
Livongo	2 968	2 170	700	95%
VillageMD	737	737	-	1%
Cedar	197	206	142	4%
Total Healthcare	6 710	6 063	1 342	131%
Other	-	4	5
Total Portfolio Value	74 230	92 868	73 430	29%
Net Cash / (Net Debt)	-930	-825	-2 887
Other Net Assets / (Liabilities)	-5	-33	-39
Total Net Asset Value	73 295	92 010	70 503	31%
Net Asset Value per Share, SEK	264.98	333.58	255.71	31%
Closing Price, Class B Share, SEK	228.60	258.70	213.00	40%

¹ Includes investments, divestments and dividends.

² For a split of the unlisted assets, see page 11.

E-Commerce & Marketplaces

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 RIIHULQJ =DODQGR DGGUHVVHV FRXQWU\ VSHFLğF FXVWRPHU preferences in each of its 17 European markets.

• Zalando reported Q3 2019 revenue and GMV growth of 27% and 25% respectively, with an adjusted EBIT margin of 0.4%, driven by strong traffc and active customer growth
• Full-year outlook was confrmed, with GMV growth in the 20-25% range, and adjusted EBIT in the upper half of the initial 175-225 MEUR range
• The company launched a new sustainability strategy which aims for a net-positive impact for people and the planet, and committed to a netzero carbon footprint in its own operations

Global Fashion Group (GFG) is an online fashion destination for growth markets. GFG operates across three regions, APAC, LATAM and CIS, offering over 10,000 international and local brands across 17 countries with a combined population of close to two billion.

• GFG reported Q3 2019 NMV and revenue growth of 24% and 19% respectively, and Marketplace share continued to grow representing 22% of NMV
• Active customers reached 12.4 million at the end of the quarter, a growth of 15%, and NMV per active customer grew by 7%. Number of orders grew by 21% to 8.5 million
• The adjusted EBITDA margin was negative 2.8%, an improvement of 3.1 percentage points compared to last year

Go to company website > Go to company website >

26% SEK 30.8BN

KINNEVIK STAKE FAIR VALUE

41% SEK 1.9BN

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• Quikr has discovered that certain dealers and vendors within the managed rentals and cars segments have placed fctitious or misrepresented transactions on its platform
• These had the dual effect of potentially overstating the value of transactions and revenue generated in these categories, while introducing risk on recoverability of receivables
• The company has reduced its footprint in these segments while it strengthens internal operational controls to prevent recurrence, and also pursues criminal action against those responsible for past actions
• Quikr has accordingly sought to manage its headcount and cost base to refect the streamlined business
• Other business segments, including blue-collar jobs, used goods classifeds, and real estate sales, account for a majority of historical revenue, and continue to experience growth and occupy strong market positions

E-Commerce & Marketplaces

MatHem is Sweden's leading independent online grocery retailer, reaching more than half of all Swedish households. The offering consists of 15,000+ SKUs with particular focus on organic and local products.

• MatHem's net revenue amounted to SEK 347m in Q3 2019 and SEK 1,509m during the last twelve months per 30 September 2019, representing 14% and 20% yearly growth respectively
• The company completed close to 1.5 million deliveries during the last twelve months per 30 September 2019
• MatHem's new CEO Johan Lagercrantz joined the company in December. Johan brings a breadth of operational and leaderhip experience from over ten years in the staffng industry

Kolonial.no is the leading online grocery store in Norway, with the ambition to make grocery shopping an effortless activity that brings freedom in customers' everyday lives.

• Kolonial's net revenue amounted to NOK 233m in Q3 2019 and NOK 1,031m during the last twelve months, representing 32% and 14% yearly growth respectively
• The company completed close to 1 million deliveries during the last twelve months
• During Q4, Kolonial moved away from delivering their groceries in plastic bags to instead delivering in cardboard boxes, effectively reducing the carbon footprint by over 40% per box

24% SEK 686M

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KINNEVIK STAKE FAIR VALUE

Omio is the largest multi-modal travel platform in Europe allowing consumers to book various modes of WUDQVSRUW LQFOXGLQJ WUDLQV EXVHV DQG ĠLJKWV 7KH FRPpany currently operates in 15 countries, with over 800 supply partners and over 27 million monthly users.

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TravelPerk is the leading solution for businesses to book corporate travel online. Based in Barcelona, the company serves over 2,000 clients, offering end travellers an intuitive booking and support experience, while also providing administrators control and visibility over travel spend.

• During 2019, TravelPerk has grown gross transaction volumes by three times year on year, and now manages annual corporate travel spend of approximately 350 MEUR
• The company increased its average take-rate on transactions by 45% during the year, driven by its focus on monetisation through premium and value-added services, as well as benefts of scale

• In October, Omio acquired global multi-modal trip planning site Rome2rio. Omio will work on creating new product experiences for their combined user base of half a billion users and will draw on synergies across marketing, commercial and technology to drive greater effciencies on a global scale

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E-Commerce & Marketplaces

Qliro Group is a Nordic e-commerce group that owns the online marketplace CDON.COM, the fashion EUDQG 1HOO\ DQG WKH ğQWHFK FRPSDQ\ QOLUR RIIHULQJ ğQDQFLDO VHUYLFHV WR PHUFKDQWV DQG FRQVXPHUV

• Net sales decreased in the fourth quarter by 12%, driven by CDON meeting its fnancial target to grow GMV from external merchants. Qliro grew its loan book by 39% during the quarter to over SEK 2bn and Nelly's net sales decreased by 1% on the back off clearance sales to balance inventory levels
• As previously announced, Qliro Group's strategy is to split the group into three separate companies, with Qliro to be listed on Nasdaq Stockholm, CDON to be listed on First North and distributed to Qliro Group's shareholders, and Nelly will retain Qliro Group's current listing under a new name
• In connection with the completion of this split, CEO Marcus Lindqvist will leave his position

29% KINNEVIK STAKE

7HOH2 RIIHUV PRELOH DQG ğ[HG FRQQHFWLYLW\ WHOHSKRQ\ data network services, TV, streaming and global IoT solutions for millions of customers in primarily Sweden and the Baltics.

• Tele2 reported revenues of SEK 7.3bn and end user service revenue of SEK 5.0bn in Q4 2019, both largely fat on an organic basis
• Underlying EBITDA grew organically by 10%, driven by synergies from the Com Hem merger and continued strong performance in the Baltics
• The integration of Com Hem was concluded during the quarter, two years ahead of time, with SEK 800m in cost savings delivered. The residual of the SEK 900m target will be rolled into Tele2's new three-year business transformation program
• The Board of Directors proposed an ordinary dividend of SEK 5.50 per share and an extraordinary dividend of SEK 3.50 per share

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FAIR VALUE

Financial Services

Betterment is a smart money manager that offers cash management services, alongside their core investing and retirement solutions. Using cutting-edge technology, they empower their customers to manage their money through personalized expert advice, automated money management tools and tax strategies.

• Assets under management amounted to USD 21.5bn at the end of December 2019, an annual increase of 51%. Number of customers totalled 480,000, an increase of 20%
• Last quarter, the company introduced a cash management platform, Betterment Everyday. At launch, high-yield cash accounts was available to all customers, and during the fourth quarter checking accounts was launched

16% SEK 1.3BN

KINNEVIK STAKE FAIR VALUE

%D\SRUW SURYLGHV ğQDQFLDO VROXWLRQV WR IRUPDOO\ DQG informally employed individuals in emerging markets. The company's operations span 9 countries across Africa and Latin America.

• At the end of Q4 2019, Bayport's payroll customer base amounted to 538,000 representing a yearly growth of 9%
• Bayport issued a USD 80m subordinated social bond during the quarter of which USD 30m was used to repurchase the company's existing senior unsecured social bonds

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KINNEVIK STAKE FAIR VALUE

22% SEK 1.1BN

Bima offers affordable and uniquely designed life and health insurance products via mobile phones. Bima is active in 13 countries across Africa, Asia, Latin America and the Caribbean.

• At the end of December 2019, BIMA had 5.1 million active customers, which is in line with last year and with the company's strategy
• In Q4 2019, BIMA continued to strengthen its product suite in the mobile money and post-paid segments in new and existing markets

0RQHVH ODXQFKHG LQ 6HSWHPEHU 201 DV WKH ğUVW IXOly mobile current account in the UK. Today, people from all over Europe can open a current account in minutes, free from the hidden fees and restrictions that legacy banks impose.

• New customers totalled 472,000 in the past three months bringing the total signups to over 2 million
• During the quarter, Monese enabled direct debits within the Single Euro Payments Area (SEPA), making its services more relevant for European customers

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16% SEK 383M

Healthcare

Babylon is a digital healthcare service company based in the United Kingdom. Combining mobile WHFK DQG DUWLğFLDO LQWHOOLJHQFH ZLWK PHGLFDO H[SHUWLVH Babylon's mission is to make healthcare more accessible and affordable for people everywhere.

• "GP at hand", the digital GP service in collaboration with the NHS, continued to grow to over 70,000 registered patients, making it the third largest registered patient list in England
• In January 2020, Babylon launched in the US after having joined forces with two large strategic partners

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 and is expanding to more conditions.

• The company reported Q3 2019 revenues of USD 47m, a growth of 148%, and 208,000 enrolled diabetes members, up 118% compared to last year
• Adjusted EBITDA of negative USD 4m, an adjusted EBITDA margin of negative 8%
• Livongo earned preferred status on the Express Scripts Digital Health Formulary, making it easier for employers and health plans to integrate Livongo into their pharmacy beneft

Go to company website >

Go to company website >

14% SEK 3.0BN

VillageMD is a leading US based provider of primary care and a pioneer in the delivery of value-based care. The company transforms the healthcare experience for consumers by enabling primary care physicians to operate higher quality, risk bearing clinical models.

• Per 31 December 2019, the company oversees USD 3.3bn in total medical spend
• VillageMD successfully launched its state-of-the-art primary care clinics called Village Medical next to fve Walgreens stores with plans to launch more

Financial review

INVESTMENT ACTIVITY

Investee Company (SEKm)	Q4 2019	FY 2019
MatHem	-	889
Livongo	-	825
VillageMD	-	726
GFG	-	632
Babylon	-	374
Kolonial	2	341
Monese	-	156
Quikr	2	149
TravelPerk	-	122
Bima	39	121
Pleo	-	85
Cedar	-	47
Budbee	-	46
Other	-	53
Investments	43	4 566
Zalando	-	5 876
Westwing	128	128
Other	91	182
Divestments	219	6 186
Net Investments	(176)	(1 620)

DIVIDEND AND CAPITAL STRUCTURE

As at 31 December 2019, Kinnevik carried net debt of SEK 0.9bn, corresponding to a leverage of 1.3% of Portfolio Value.

During 2019, Kinnevik received dividends of SEK 2.9bn and paid a cash dividend of SEK 2.3bn. Furthermore, during the fourth quarter Kinnevik distributed its SEK 16.5bn shareholding in Millicom.

For the fnancial year 2019, the Board of Directors of Tele2 has recommended a total dividend of SEK 9 per share which corresponds to an aggregate expected dividend to Kinnevik amounting to SEK 1.7bn.

In line with Kinnevik's amended shareholder remuneration policy, the Board of Kinnevik does not propose a dividend for the fscal year 2019.

ANNUALIZED TOTAL SHAREHOLDER RETURN

12% 16% 9% 40% Past 30 years Past 10 years Past 5 years Past 12 months

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.

FINANCIAL TARGETS

Attractive Returns

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.

Low Leverage

Given the nature of Kinnevik's investments, our goal is to carry low leverage, not exceeding 10% of portfolio value.

Amended shareholder remuneration policy

Kinnevik has resolved to amend its shareholder remuneration policy. Kinnevik's prior objective was to pay an annual dividend growing in line with dividends received from its investee companies and the cash fow generated from its investment activities. Going forward, Kinnevik will generate shareholder returns primarily through capital appreciation, and will seek to return excess capital generated by its investments to shareholders through extra dividends.

EVENTS AFTER THE REPORTING PERIOD

On 3 February, it was announced that Anna Stenberg will join Kinnevik as Chief People and Platform Offcer, a new role in the Kinnevik management team.

FINANCIAL REVIEW

VALUATION OF UNLISTED FINANCIAL ASSETS

				Change in fair value and dividends received
Investment (SEKm)	Kinnevik's Ownership	Net Invested Amount	Fair Value 31 Dec 2019	Q4 2019	FY 2019
Budbee	24%	126	224	-	98
Kolonial	24%	669	686	-11	35
MatHem	38%	889	889	-	-
Quikr	17%	1 029	941	-764	-851
Saltside	61%	198	325	118	123
Omio	6%	443	468	-24	25
TravelPerk	15%	349	506	-25	161
Other	Mixed	63	62	3	-6
Total E-Commerce & Marketplaces		3 766	4 101	-703	-415
Total TMT	Mixed	17	-	56	-62
Bayport 1	22%	467	1 110	-122	-62
Betterment	16%	1 065	1 315	41	162
Bima	36%	378	936	-113	-58
Bread	13%	307	315	-16	17
Deposit Solutions	6%	263	285	-5	11
Monese	16%	353	383	9	25
Pleo	13%	152	343	-7	191
Other	Mixed	86	75	-10	-11
Total Financial Services		3 071	4 762	-223	275
Babylon	16%	804	2 808	-142	1 934
VillageMD	10%	726	737	-	11
Cedar	10%	188	197	-9	8
Total Healthcare		1 718	3 742	-151	1 953
Other	Mixed	-	-	-4	-1
Total Unlisted Financial Assets		8 572	12 605	-1 025	1 750

¹ Ownership on a fully diluted as converted basis.

FINANCIAL REVIEW

FAIR VALUES AS AT 31 DECEMBER 2019

At 31 December 2019, the fair value of Kinnevik's unlisted fnancial assets amounted to a total of SEK 12,605m, to be compared with an accumulated invested amount (net after dividends received) of SEK 8,572m.

VALUATION METHODS

Kinnevik's unlisted fnancial assets are valued using IFRS 13 and the International Private Equity and Venture Capital Valuation Guidelines, where a collective assessment is made to establish the valuation methods and points of reference that are most suitable to triangulate the fair value of each individual asset.

While a valuation in a recent transaction is not applied as a valuation method as such, it typically provides an important point of reference and basis for the valuation of the asset in question, especially as it pertains to Kinnevik's younger investee companies where traditional valuation techniques are less applicable.

LIQUIDATION PREFERENCES

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 over time, and 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.

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.

E-COMMERCE & MARKETPLACES

The fair value of Kinnevik's 24 percent shareholding in Budbee amounts to SEK 224m, based on a total value of Budbee's equity of SEK 938m. The valuation is based on growth-adjusted trailing and forward-looking revenue multiples of a peer group of logistics companies, and corresponds to the valuation in a funding round during Q1 2019.

The fair value of Kinnevik's 24 percent shareholding and other interest in Kolonial amounts to SEK 686m, based on a total value of Kolonial's equity of NOK 2.0bn. The valuation is based on trailing and forward-looking revenue multiples of a peer group of inventory-holding e-commerce retailers, implies a multiple of 2.2x the company's last twelve months' revenues as at 30 September 2019, and corresponds to the valuation in a secondary transaction during Q2 2019.

The fair value of Kinnevik's 38 percent shareholding in

MatHem amounts to SEK 889m, based on a total value of MatHem's equity of SEK 2.4bn. The valuation of MatHem applies a multiple of 1.5x on the company's last twelve months' revenues as at 30 September 2019. The applied multiple is referenced from a peer group of inventory-holding ecommerce retailers.

The fair value of Kinnevik's 17 percent shareholding and other interests in Quikr amounts to SEK 941m. The valuation of Quikr is based on forward-looking revenue multiples of a peer group of emerging market online classifeds companies, with particular focus on companies active in India and adjacent markets. The valuation refects the impact of the aforementioned fctitious or misrepresented transactions as well as a reduced footprint and amended revenue recognition principles. The change in valuation method from a discounted cash fow analysis ensures that only near-term projected fnancial performance is refected in the assessed fair value.

The fair value of Kinnevik's 61 percent shareholding and other interests in Saltside amounts to SEK 325m. The valuation of Saltside is based on trailing revenue multiples of a peer group of emerging market online classifeds companies. The change in valuation method from a discounted cash fow analysis is refective of an improved fnancial profle more similar to that of the peer group.

The fair value of Kinnevik's 6 percent shareholding in Omio amounts to SEK 468m and is based on forward-looking revenue multiples of a peer group of online travel booking platforms, and corresponds to the valuation in a funding round during Q3 2018.

The fair value of Kinnevik's 15 percent shareholding in Travel-Perk amounts to SEK 506m and is based on forward-looking revenue multiples of a peer group of online travel booking platforms, and corresponds to the valuation in a funding round during Q3 2019.

FINANCIAL SERVICES

The fair value of Kinnevik's 22 percent shareholding in Bayport amounts to SEK 1,110m and is based on forwardlooking price-to-earnings multiples of a peer group of consumer fnance companies.

The fair value of Kinnevik's 16 percent shareholding in Betterment amounts to SEK 1,315m, and is based on a discounted cash fow analysis.

The fair value of Kinnevik's 36 percent shareholding and other interests in Bima amounts to SEK 936m, and is based on a discounted cash fow analysis as well as references to forward-looking revenue multiples of a peer group of insurance technology companies.

The fair value of Kinnevik's 13 percent shareholding in Bread amounts to SEK 315m and is based on forward-looking revenue multiples of a peer group of software, SaaS, payments, and lending companies, and corresponds to the valuation in a funding round during Q3 2018.

The fair value of Kinnevik's 6 percent shareholding in Deposit

FINANCIAL REVIEW

Solutions amounts to SEK 285m, based on a total value of Deposit Solution's fully diluted equity of EUR 420m. The valuation is based on forward-looking revenue multiples of a peer group of SaaS, software licensing, and fnancial technology companies.

The fair value of Kinnevik's 16 percent shareholding and other interest in Monese amounts to SEK 383m and is based on forward-looking revenue multiples of a peer group of fnancial brokers and subscription businesses, and corresponds to the valuation in a funding round during Q3 2018.

The fair value of Kinnevik's 13 percent shareholding in Pleo amounts to SEK 343m and is based on forward-looking revenue multiples of a peer group of SaaS companies and corresponds to the valuation in a funding round during Q2 2019.

HEALTHCARE

The fair value of Kinnevik's 16 percent shareholding and other interest in Babylon amounts to SEK 2,808m, and is based on forward-looking revenue multiples of a peer group of disruptive healthcare and healthcare IT companies, and corresponds to the valuation in a funding round during Q3 2019.

The fair value of Kinnevik's 10 percent shareholding in VillageMD amounts to SEK 737m, and is based on trailing revenue multiples of a peer group of different types of care providers and outsourced services companies.

The fair value of Kinnevik's 10 percent shareholding in Cedar amounts to SEK 197m, and is based on forward-looking revenue multiples of a peer group of healthcare software and analytics companies, and corresponds to the valuation in a funding round during Q2 2018.

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SEK m	Note	Q4 2019	Q4 2018	FY 2019	FY 2018
Change in fair value of fnancial assets	4	-1 914	-8 590	18 972	-15 184
Dividends received	5	892	449	2 907	1 887
Administration costs		-132	-150	-391	-339
Other operating income		4	16	50	32
Other operating costs		-1	0	-4	-5
2SHUDWLQJ SURğWORVV		-1 151	-8 275	21 534	-13 609
Financial net		41	-4	39	-46
3URğWORVV DIWHU ğQDQFLDO QHW		-1 110	-8 279	21 573	-13 655
Tax		-1	-1	-1	-1
1HW SURğWORVV IRU WKH SHULRG		-1 111	-8 280	21 572	-13 656
Net proft/loss per share before dilution		-4.02	-30.04	78.11	-49.58
Net proft/loss per share after dilution		-4.02	-30.04	78.02	-49.58
7RWDO FRPSUHKHQVLYH LQFRPH IRU WKH SHULRG		-1 111	-8 280	21 572	-13 656
Outstanding shares at the end of the period		276 604 474	275 717 450 276 604 474		275 717 450
Average number of shares before dilution		276 174 934	275 420 307 276 160 962		275 416 805
Average number of shares after dilution		276 465 783	275 810 041 276 483 775		275 818 034

CONSOLIDATED EARNINGS FOR THE FOURTH QUARTER

The change in fair value of fnancial assets including dividends received amounted to a loss of SEK 1,022m (loss of 8,141) for the fourth quarter of which SEK 3m (loss of 6,773) was related to listed holdings and a loss of SEK 1,025m (loss of 1,368) was related to unlisted holdings. See note 4 and 5 for further details.

CONSOLIDATED EARNINGS FOR THE YEAR

The change in fair value of fnancial assets including dividends received amounted to a proft of SEK 21,879m (loss of 13,297) for the year of which a proft of SEK 19,267m (loss of 12,307) was related to listed holdings and a proft of SEK 2,612m (loss of 990) was related to unlisted holdings. See note 4 och 5 for further details. The increase in administration costs is mainly explained by higher investment and divestment activities. Improved fnancial net is mainly due to exchange differences.

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SEK m	Note	Q4 2019	Q4 2018	FY 2019	FY 2018
Dividends received	5	892	449	2 907	1 887
Cash fow from operations		-63	-54	-222	-260
&DVK ĠRZ IURP RSHUDWLRQV EHIRUH LQWHUHVW QHW DQG LQFRPH WD[HV		829	395	2 685	1 627
Interest, received		0	0	0	0
Interest, paid		-7	0	-49	-48
&DVK ĠRZ IURP RSHUDWLRQV		822	395	2 636	1 579
Investments in fnancial assets		-143	-371	-4 586	-2 710
Sale of shares and other securities		195	1 195	6 162	1 589
&DVK ĠRZ IURP LQYHVWLQJ DFWLYLWLHV		52	824	1 576	-1 121
Repayment of loan		-2 710	-1 500	-500	-
Borrowing		300	508	1 960	500
Cash dividend paid to equity holders of the Parent company		-1 102	-	-2 271	-2 270
&DVK ĠRZ IURP ğQDQFLQJ DFWLYLWLHV		-3 512	-992	-811	-1 770
&DVK ĠRZ IRU WKH SHULRG		-2 638	227	3 401	-1 312
&DVK DQG VKRUW WHUP LQYHVWPHQWV RSHQLQJ EDODQFH		6 525	259	486	1 798
&DVK DQG VKRUW WHUP LQYHVWPHQWV FORVLQJ EDODQFH		3 887	486	3 887	486
SUPPLEMENTARY CASH FLOW INFORMATION
Investments in fnancial assets	4	-43	-392	-4 566	-2 731
Investments not paid		-	21	-	21
Prior period investments, paid in current period		-100	-	-20	-
&DVK ĠRZ IURP LQYHVWPHQWV LQ ğQDQFLDO DVVHWV		-143	-371	-4 586	-2 710

FINANCIAL STATEMENTS FOR THE GROUP

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SEK m	Note	1 'HF 2019	1 'HF 2018
ASSETS
)L[HG DVVHWV
Financial assets accounted at fair value through proft and loss	4	74 230	73 430
Tangible fxed assets		51	54
Right of use asset		11	-
Other fxed assets		27	24
7RWDO ğ[HG DVVHWV		74 319	73 508
Other current assets		70	54
Short term investments		3 664	149
Cash and cash equivalents		223	337
TOTAL ASSETS		78 276	74 048
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity attributable to equityholders of the Parent Company		73 295	70 503
Interest bearing liabilities, long term		1 426	2 871
Interest bearing liabilities, short term		3 410	500
Non interest bearing liabilities		145	174
TOTAL EQUITY AND LIABILITIES		78 276	74 048

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Ratio	Note	1 'HF 2019	1 'HF 2018
Debt/equity ratio		0.07	0.05
Equity ratio		94%	95%
Net debt, for the Group, including net loans to investee companies	6	-456	-2 769
Net debt, for the Group, excluding net loans to investee companies	6	-930	-2 887
Leverage, excluding net loans to investee companies		1.3%	4.1%

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	3DUHQW &RPSDQ\łV VKDUHKROGHUV
SEK m	6KDUH FDSLWDO	2WKHU FRQWULEXWHG FDSLWDO	5HWDLQHG HDUQLQJV LQFOXGLQJ QHW UHVXOW IRU WKH \HDU	7RWDO VKDUH KROGHUVł HTXLW\
2SHQLQJ EDODQFH 1 -DQXDU\ 201	27	8 840	81 766	90 633
Proft for the period			-13 656	-13 656
7RWDO FRPSUHKHQVLYH LQFRPH IRU WKH SHULRG	0	0	-13 656	-13 656
7UDQVDFWLRQV ZLWK VKDUHKROGHUV
New issue	1		-	1
Effect of employee share saving programme			22	22
Distribution in kind			-4 227	-4 227
Cash dividend			-2 270	-2 270
&ORVLQJ EDODQFH 1 'HFHPEHU 201	28	8 840	61 635	70 503
Proft/Loss for the period			21 572	21 572
7RWDO FRPSUHKHQVLYH LQFRPH IRU WKH \HDU	0	0	21 572	21 572
7UDQVDFWLRQV ZLWK VKDUHKROGHUV
Effect of employee share saving programme			39	39
Distribution in kind			-16 548	-16 548
Cash dividend			-2 271	-2 271
&ORVLQJ EDODQFH 1 'HFHPEHU 2019	28	8 840	64 427	73 295

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NOTE 1 ACCOUNTING PRINCIPLES

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 2019 Kinnevik applies IFRS 16 Leases. The transition to IFRS 16 resulted in assets and liabilities increasing by SEK15m. The accounting principles and calculation methods applied in this report are the same as those described in the 2018 Annual Report.

NOTE 2 RISK MANAGEMENT

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, South East Asia and Africa.

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 2018 Annual Report.

NOTE 3 RELATED PARTY TRANSACTIONS

The Annual General Meeting on 6 May 2019 resolved in line with the Board's proposal to transfer of the real property Åre Äggsjön 1:2 to an entity owned by Cristina Stenbeck, Wilhelm Klingspor and Marie Klingspor for SEK 35m. Wilhelm Klingspor and Cristina Stenbeck did not participate in the Board's handling of the transfer, which was conducted under market conditions.

Other related party transactions for the period are of the same character as the transactions described in the 2018 Annual Report.

NOTE 4 FINANCIAL ASSETS ACCOUNTED AT FAIR VALUE THROUGH PROFIT AND LOSS

Kinnevik's unlisted holdings are valued using IFRS 13 and the International Private Equity and Venture Capital Valuation Guidelines, where a collective assessment is made to establish the valuation methods and points of reference that are most suitable to determine the fair value of each individual asset. While a valuation in a recent transaction is not applied as a valuation method as such, it typically provides an important point of reference and basis for the valuation of the asset in question, especially as it pertains to Kinnevik's younger investee companies where traditional valuation techniques are less applicable. 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. Valuation methods include forward or trailing revenue or proft multiples, or discounting future expected cash fows. When performing a valuation based on multiples, consideration is given to differences in size, historic growth, proftability and cost of capital.

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 by the Audit Committee and included in Kinnevik's accounts.

Below is a summary of the valuation methods applied in the accounts as per 31 December 2019:

Company	6XPPDU\
Kolonial	ƒ Trailing and forward-looking revenue multiples of a peer group of inventory-holding e-commerce retailers, implying a multiple of 2.2x the company's last twelve months' revenues as per 30 September 2019 and corresponding to the valua tion in a secondary transaction during the second quarter of 2019 ƒ Equity value of NOK 2.0bn
MatHem	ƒ Applying a multiple of 1.5x the company's last twelve months' revenues as per 30 September 2019 ƒ The multiple is referenced from a peer group of inventory-holding e-commerce retailers ƒ Equity value of SEK 2.4bn
Budbee	ƒ Growth-adjusted trailing and forward-looking revenue multiples of a peer group of logistics companies, corresponding to the valuation in a funding round during the frst quarter of 2019 ƒ Equity value of SEK 938m
Quikr	ƒ Forward-looking revenue multiples of a peer group of emerging market online classifeds companies, with particular focus on companies active in India and adjacent markets ƒ Refecting the impact of fctitious or misrepresented transactions as well as a reduced footprint and amended revenue recognition principles ƒ The change in valuatoin method from a discounted cash fow analysis ensures only near-term projected fnancial perfor mance is refected in our assessed fair value
Saltside	ƒ Trailing revenue multiples of a peer group of emerging market online classifeds companies ƒ The change in valuation method from a discounted cash fow analysis is refective of an improved fnancial profle more similar to that of the peer group
Omio	ƒ Forward-looking revenue multiples of a peer group of online travel booking platforms, corresponding to the valuation in a funding round during the third quarter of 2018
TravelPerk	ƒ Forward-looking revenue multiples of a peer group of online travel booking platforms, corresponding to the valuation in a funding round during the third quarter of 2019
Bayport	ƒ Forward-looking earnings multiples of a peer group of insurance technology companies
Betterment	ƒ Discounted cash fow analysis
Bima	ƒ Discounted cash fow analysis as well as forward-looking revenue multiples of a peer group of insurance technology companies
Bread	ƒ Forward-looking revenue multiples of a peer group of software, software-as-a-service, payments, and lending compa nies, corresponding to the valuation in a funding round during the third quarter of 2018
Deposit Solutions	ƒ Forward-looking revenue multiples of a peer group of software-as-a-service, software licensing, and fnancial technology companies ƒ Fully diluted equity value of EUR 420m
Monese	ƒ Forward-looking revenue multiples of a peer group of fnancial brokers and subscription businesses, corresponding to the valuation in a funding round during the third quarter of 2018
Pleo	ƒ Forward-looking revenue multiples of a peer group of software-as-a-service companies, corresponding to the valuation in a funding round during the second quarter of 2019
Babylon	ƒ Forward-looking revenue multiples of a peer group of disruptive healthcare and healthcare IT companies, corresponding to the valuation in a funding round during the third quarter of 2019
VillageMD	ƒ Trailing revenue multiples of a peer group of different types of care providers and outsourced services companies
Cedar	ƒ Forward-looking revenue multiples of a peer group of healthcare software and analytics companies, corresponding to the valuation in a funding round during the second quarter of 2018

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	Q4 2019	Q4 2018	FY 2019	FY 2018
Com Hem	-	-173	-	600
Global Fashion Group	173	-	-1 816	-
Home24	61	-378	-191	53
Livongo	799	-	379	-
Millicom	-1 399	1 778	-4 596	228
MTG	-	-	-	-419
Qliro Group	-113	-151	-95	-375
SDS	-	-1	-	-3
Tele2	-2 064	1 236	4 268	2 181
Westwing	63	-269	-355	-269
Zalando	1 592	-9 263	18 766	-16 173
7RWDO /LVWHG KROGLQJV	-889	-7 222	16 360	-14 179
Babylon	-142	-13	1 934	3
Bayport	-122	-3	-62	90
Betterment	41	-3	162	89
Bread	-16	-1	17	-9
Budbee	-	-	98	-
Cedar	-9	-	8	1
Deposit Solutions	-5	-4	11	11
Global Fashion Group	-	-1 284	-155	-1 955
Home24	-	-	-	81
Kolonial	-11	-20	35	-19
Livongo	-	9	1 065	139
MatHem	-	-	-	-
Bima	-113	-3	-58	67
Monese	9	-6	25	5
Omio	-24	-2	25	-
Pleo	-7	-1	191	-1
Quikr	-764	21	-851	285
TravelPerk	-25	-4	161	-4
VillageMD	-	-	11	-
Westwing	-	-1	-	271
Other*	163	-53	-5	-59
7RWDO 8QOLVWHG KROGLQJV	-1 025	-1 368	2 612	-1 005
7RWDO	-1 914	-8 590	18 972	-15 184

* Other includes i.a. Enuygun, Iroko, Karma and Zanui.

NOTES FOR THE GROUP

		1 'HFHPEHU 2019
%RRN YDOXH RI ğQDQFLDO DVVHWV	&ODVV \$ VKDUHV	&ODVV % VKDUHV	&DSLWDO 9RWHV	1 'HF 2019	1 'HF 2018
Global Fashion Group	79 093 454	-	40.7/40.7	1 945	-
Home24	3 111 953	-	11.8/11.8	162	352
Livongo	12 653 927	-	13.3/13.3	2 968	-
Millicom	-	-	-	-	21 169
Qliro Group	42 613 642	-	28.5/28.5	296	391
Tele2	20 733 965	166 879 154	27.3/42.0	25 440	21 172
Westwing	-	-	-	-	482
Zalando	65 297 800	-	26.4/26.4	30 814	17 924
7RWDO /LVWHG +ROGLQJV				61 625	61 491
Babylon			16/16	2 808	500
Bayport			22/22	1 110	1 172
Betterment			16/16	1 315	1 153
Bread			13/13	315	298
Budbee			24/24	224	80
Cedar			10/10	197	142
Deposit Solutions			6/6	285	274
Global Fashion Group			-	-	3 284
Kolonial			24/24	686	309
Livongo			-	-	700
MatHem			38/38	889	-
Bima			36/36	936	873
Monese			16/16	383	202
Omio			6/6	468	443
Pleo			13/13	343	67
Quikr			17/17	941	1 643
Saltside			61/61	325	199
TravelPerk			15/15	506	223
VillageMD			10/10	737	-
Other*			-	137	377
7RWDO 8QOLVWHG +ROGLQJV				12 605	11 939

7RWDO 74 230 73 430

* Other includes i.a. Enuygun, Iroko, Karma and Zanui.

NOTES FOR THE GROUP

,QYHVWPHQWV LQ ğQDQFLDO DVVHWV Q4 2019 Q4 2018 FY 2019 FY 2018 Babylon - 2 374 122 Bima 39 - 121 - Bread - - - 307 Budbee - - 46 80 Cedar - - 47 141 Deposit Solutions - 50 - 263 Global Fashion Group - - 632 - Kolonial 2 - 341 328 Livongo - 111 825 456 MatHem - - 889 - Monese - - 156 197 Omio - - - 443 Pleo - 1 85 68 Quikr 2 - 149 - TravelPerk - 227 122 227 VillageMD - - 726 - Other 0 1 53 99 7RWDO 8QOLVWHG +ROGLQJV 43 392 4 566 2 731 7RWDO 43 392 4 566 2 731

&KDQJHV LQ XQOLVWHG DVVHWV OHYHO	Q4 2019	Q4 2018	FY 2019	FY 2018
Opening balance	13 653	13 671	11 939	11 682
Investments	43	392	4 566	2 731
Disposals / Exit proceeds	- 66	- 5	- 161	- 419
Reclassifcation	-	- 751	-6 351	-1 050
Change in fair value	-1 025	-1 368	2 612	-1 005
&ORVLQJ EDODQFH	12 605	11 939	12 605	11 939

NOTE 5 DIVIDENDS RECEIVED

SEKm	Q4 2019	Q4 2018	FY 2019	FY 2018
Millicom	480	449	956	890
Tele2	412	-	1 951	610
MTG	-	-	-	169
Com Hem	-	-	-	203
Other	-	-	-	15
7RWDO GLYLGHQGV UHFHLYHG	892	449	2 907	1 887
Of which ordinary cash dividends	892	449	1 781	1 872

NOTE 6 INTEREST BEARING ASSETS AND LIABILITIES

Kinnevik's total interest bearing assets amounted to SEK 4,380m as at 31 December 2019. The total amount of interest bearing liabilities was SEK 4,836m. Kinnevik was in a net debt position of SEK 456m as at 31 December 2019, including loans to investee companies (net debt SEK 2,769m as at 31 December 2018). Net debt excluding loans to portfolio companies amounted to SEK 930m.

Kinnevik's total credit facilities (including issued bonds) amounted to SEK 9,980m as at 31 December 2019 whereof SEK 6,000m related to unutilised revolving credit facilities and SEK 3,850m related to bonds.

The Group's available liquidity, including short term investments and available unutilized credit facilities, totalled SEK 9,056m as at 31 December 2019 (SEK 6,116m as at 31 December 2018).

SEKm	1 'HF 2019	1 'HF 201
,QWHUHVW EHDULQJ DVVHWV
Loans to investee companies	474	118
Short term investments	3 664	149
Cash and cash equivalents	223	337
Other interest bearing assets	19	19
7RWDO LQWHUHVW EHDULQJ DVVHWV	4 380	623
,QWHUHVW EHDULQJ ORQJ WHUP OLDELOLWLHV
Corporate bonds	1 400	2 850
Accrued borrowing cost	-11	-13
Other interest bearing liabilities	37	34
7RWDO ORQJ WHUP LQWHUHVW EHDULQJ OLDELOLWLHV	1 426	2 871
,QWHUHVW EHDULQJ VKRUW WHUP OLDELOLWLHV
Corporate bonds	2 450	-
Commercial papers	960	500
7RWDO VKRUW WHUP LQWHUHVW EHDULQJ OLDELOLWLHV	3 410	500
7RWDO LQWHUHVW EHDULQJ OLDELOLWLHV	4 836	3 371
Net interest bearing liabilities / assets	-456	-2 748
Debt, unpaid investments/divestments	0	-21
1HW FDVK1HW GHEW? IRU WKH *URXS LQFOXGLQJ QHW ORDQV WR LQYHVWHH FRPSDQLHV	-456	-2 769
1HW FDVK1HW GHEW? IRU WKH *URXS H[FOXGLQJ QHW ORDQV WR LQYHVWHH FRPSDQLHV	-930	-2 887

The outstanding loans carry an interest rate of Stibor or similar base rate with an average margin of 0.7%. 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 31 December 2019, the average remaining tenor was 1.8 years for all credit facilities including the bonds. Kinnevik had not provided any security for any of its outstanding loans.

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SEK m	Q4 2019	Q4 2018	FY 2019	FY 2018
Administration costs	-111	-140	-344	-316
Other operating income and costs	2	3	3	5
2SHUDWLQJ ORVV	-109	-137	-341	-311
Dividends received, external	-	-	-	2 984
Result from associated companies	-	-	-	6 684
Result from subsidiaries	16 707	-2 263	23 752	-2 290
Financial net	18	-19	-47	-43
3URğWORVV DIWHU ğQDQFLDO LWHPV	16 616	-2 419	23 364	7 024
Group contribution	122	-7	122	-7
3URğWORVV EHIRUH WD[HV	16 738	-2 426	23 486	7 017
Taxes	0	0		0
1HW SURğWORVV IRU WKH SHULRG*	16 738	-2 426	23 486	7 017

* Net proft corresponds with total comprehensive income.

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SEK m	1 'HF 2019	1 'HF 201
ASSETS
Tangible fxed assets	3	4
Financial fxed assets	50 138	62 912
Long term receivables	30 252	20
Short term receivables	148	38
Short term investments	3 664	149
Cash and cash equivalents	191	202
TOTAL ASSETS	84 396	63 325
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity	56 142	51 155
Provisions	20	26
Long term interest bearing liabilities	1 400	2 842
Short term interest bearing liabilities	3 401	500
Other short term liabilities	23 433	8 802
TOTAL SHAREHOLDERS' EQUITY AND LIABLITIES	84 396	63 325

The Parent Company's liquidity, including short-term investments and unutilized credit facilities, totalled SEK 9,025m (5,981) at 31 December 2019. The Parent Company's interest bearing external liabilities amounted to SEK 4,801m (3,341) on the same date. Investments in tangible fxed assets amounted to SEK 0m (1) during the period.

Distribution by class of shares on 31 December 2019 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	3 376
Outstanding Class B shares, 1 vote each	241 613 436	241 613 436	24 161
Outstanding Class D-G shares (LTIP 2018), 1 vote each	539 636	539 636	54
Outstanding Class D-G shares (LTIP 2019), 1 vote each	695 970	695 970	70
Class B shares in own custody	297 770	297 770	30
5HJLVWHUHG QXPEHU RI VKDUHV	276 902 244	580 701 132	27 690

The total number of votes for outstanding shares amounted at 31 December 2019 to 580,403,362 excluding 297,770 class B treasury shares. During the year 111,777 class B shares were delivered to participants in the share-based plan from 2016 and 126,922 class B shares were sold to cover the tax for the participants. In addition, and similar to LTIP 2018, a new issue of reclassifable, sub-ordinated, incentive shares, divided into four classes, to the participants in Kinnevik's long-term share incentive plan resolved on by the 2019 AGM were registered by the Swedish Companies Registration Offce (Sw. Bolagsverket) during September 2019. The Board has authorization to repurchase up to a maximum of 10% of all shares in the Company over 12 months, ending at the 2020 AGM. There are no convertibles or warrants in issue.

DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES

Kinnevik applies the Esma Guidelines on Alternative Performance Measures (APM). An APM is a fnancial measure of historical or future fnancial performance, fnancial position, or cash fows, other than a fnancial measure defned or specifed in the applicable fnancial reporting framework. For Kinnevik's consolidated accounts, this typically means IFRS.

APMs are disclosed when they complement performance measures defned by IFRS. The basis for disclosed APMs are that they are used by management to evaluate the fnancial performance and in so believed to give analysts and other stakeholders valuable information. Defnitions of all APMs used are found below. Reconciliations of a selection of APMs can be found on Kinnevik's corporate website www.kinnevik.com.

APMs 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 share holders' 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 shipping 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 measurement 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 companies
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
Onsite volumes	The value of transactions completed on a company's own website and app
Portfolio value	Total book value of fxed fnancial assets accounted at fair value through proft and loss
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

ANNUAL GENERAL MEETING 2020

The Annual General Meeting will be held on 11 May 2020 in Stockholm. Shareholders wishing to have matters considered at the Annual General Meeting should submit their proposals in writing to agm@kinnevik.com or to The Company Secretary, Kinnevik AB, Box 2094, SE-103 13 Stockholm, Sweden, at least seven weeks before the Annual General Meeting, in order for the proposal to 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 AHEAD OF THE 2020 ANNUAL GENERAL MEETING

In accordance with the resolution of the 2019 Annual General Meeting in Kinnevik, Cristina Stenbeck has convened a Nomination Committee comprising representatives of Kinnevik's largest shareholders in terms of voting interest. The Nomination Committee comprises Cristina Stenbeck, representing Verdere S.à r.l. and Camshaft S.à r.l, Hugo Stenbeck representing Alces Maximus LLC, James Anderson representing Baillie Gifford, Ramsay Brufer representing Alecta, and Marie Klingspor. The Chairman of the Nomination Committee is Cristina Stenbeck.

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

FINANCIAL REPORTS

Kinnevik's Annual Report 2019 will be published on Kinnevik's website on 27 March 2020. Dates for 2020 reporting:

17 April	Interim Report January-March
13 July	Interim Report January-June
15 October	Interim Report January-September

Stockholm 6 February 2020

The Board of Directors

REVIEW REPORT

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We have reviewed the interim report for Kinnevik AB for the period 1 January - 31 December 2019. The Board of Directors and the Chief Executive Offcer 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.

6FRSH RI 5HYLHZ

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.

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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 6 February 2020

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 08.00 CET on 6 February 2020.

For further information, visit www.kinnevik.com or contact: Torun Litzén

Director Investor Relations Phone +46 (0)70 762 00 50 Email press@kinnevik.com

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