Kinnevik

Quarterly Report • May 7, 2013

Investment : Kinnevik

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

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

INTFRIM REPORT 1 JANUARY-31 MARCH 2013

Highlights

• · On 27 March, Tele2 AB announced an agreement to sell their Russian operations to VTB Group. The transaction closed on 4 April. Following the divestment, the Board of Tele2 has proposed a share redemption program. As a result, Kinnevik is expected to receive approximately SEK 3.8bln during the second quarter.
• As previously announced, financial investments are expected to be SEK 2-3bln in 2013. The parent company leverage after dividends, the redemption programme in Tele2 and with the above assumptions regarding investments is expected to be approximately SEK 2bln.
• Kinnevik's sector split has been revised to better reflect our growth areas and now comprise "Telecom & Financial services", "Online", "Media" and "Industry and other investments".

Financial results for the first quarter

• The net asset value decreased during the quarter by 3% to SEK 57,088m at the end of March corresponding to SEK 206 per share.
• The Group's total revenue amounted to SEK 370m (102) and the net loss per share was SEK 5.83 (profit of 10.05).
• The assessed change in fair value of unlisted holdings amounted to a loss of SEK 289m in the quarter, including a profit of SEK 127m relating to Avito and a loss of SEK 431m relating to negative exchange rate effects when translating investments in EUR to SEK. The valuation of Zalando is unchanged in EUR, but due to exchange rate effects the fair value in SEK decreased by SEK 276m.
• New investments amounted to SEK 399m in the first quarter, of which SEK 384m within Online.

Kinnevik's net asset value 2008-2013 Pro forma adjusted for the acquisition of Emesco during Q3 2009. Figures in SEK m.

The figures in this report refer to the first quarter 2013 excluding discontinued operations unless otherwise stated. The figures shown within brackets refer to the comparable period in 2012.

Chief executive's review

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Total return

The Kinnevik share's average annual total return

Past 30 years 1)	19%
Past 10 years	19%
Past 5 years	6%
Past 12 months	6%

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

Kinnevik's holdings

31 March 2013, the figures shown within brackets refer to comparable period previous year.

Dividend and capital structure

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Kinnevik's part of dividends proposed to be paid from listed holdings		Amount (SEK m)
Millicom	USD 2.64 per share	6511)
Tele2	SEK 7.10 per share	962
MTG	SEK 10.00 per share	135
BillerudKorsnäs	SEK 2.00 per share	104
Total expected dividends to be received from listed holdings		1 852
Redemption of shares in Tele2	SEK 28.00 per share	3 794
Proposed dividend to Kinnevik's shareholders	SEK 6.50 per share	1 803
1) Based on an exchange rate of 6.52 SEK/USD.

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Events after the end of the reporting period

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

			Change compared to
	Proportional part of			Jan-Mar 2012
Jan-Mar 2013 (SEK m)	revenue	EBIT	revenue	EBIT
Telecom & Financial Services	5 830	835	4%	-9%
Online	1 835	-413	77%	N/A
Media	948	75	-11%	-36%
Industry and other investments	1 349	44	18%	10%
Total sum of Kinnevik's proportional part
of revenue and operating result	9 961	542	13%	-36%

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Book and fair value of assets

	Book value	Fair value	Fair value	Fair value
	2013	2013	2012	2012	Total return
SEK million	31 March	31 March	31 March	31 Dec	Q1 2013
Millicom	19 674	19 674	28 358	21 283	-8%
Tele2	15 365	15 365	18 278	15 867	-3%
Transcom	358	358	255	230	55%
Bayport	611	611	407	586
Milvik/BIMA	49	49	3	18
Other	159	159	85	135
Total Telecom & Financial Services	36 216	36 216	47 386	38 119
Zalando (directly and indirectly through Rocket)	8 250	8 250	3 270	8 526
Rocket Internet with other portfolio companies 1)	4 930	4 930	5 565	4 776
Avito (directly and through Vosvik)	1 050	1 050	336	923
CDON	616	616	940	664	-7%
Other	240	291	205	229
Total Online	15 086	15 137	10 316	15 118
MTG	3 497	3 497	4 921	3 042	15%
Metro	786	786	1 050	993
Interest bearing net cash, Metro	272	272	313	187
Total Media	4 555	4 555	6 284	4 222
BillerudKorsnäs 2) 3)	3 250	3 250	4 923	3 161	3%
Black Earth Farming	627	627	404	456	37%
Rolnyvik	173	250	250	250
Vireo	72	139	78	134
Other	4	4	0	4
Total Industry and other investments	4 126	4 270	5 655	4 005
Other interest bearing net debt	-3 035	-3 035	-2 224	-3 008
Debt, unpaid investments	-412	-412	-2 570	-110
Other assets and liabilities	357	357	283	423
Total equity/net asset value	56 893	57 088	65 130	58 769
Net asset value per share		205.94	234.97	212.00
Closing price, class B share		157.80	153.90	135.30	17%

1) For split, please see page 7.

2) As per 31 March 2012 referring to Korsnäs equity value (i.e. after deduction for net debt in Kinnevik's consolidated balance sheet related to Korsnäs) and Latgran.

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

Kinnevik's holdings

Telecom & Financial services

Investment (SEK m)	Capital/Votes %	Estimated fair value
Millicom	38.0/38.0	19 674
Tele2	30.5/47.7	15 365
Transcom	33.0/39.7	358
Bayport	43/43	611
Milvik/BIMA	44/44	49
Other		159
Total		36 216

Return Telecom & Financial services	1 year	5 years
Average yearly internal rate of return (IRR)	-20%	7%

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Millicom

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Revenue	1 246	1 168	4 814
EBITDA	494	517	2 065
Operating profit, EBIT	238	295	1 104
Net profit	143	109	504
Number of mobile subscribers (million)	47.4	43.8	47.2

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Tele2

		Jan-Mar
Key data (SEK m)	2013	2012	2012
Revenue	7 298	7 433	30 742
EBITDA	1 488	1 506	6 240
Operating profit, EBIT	670	546	1 975
Net profit	353	264	976
Number of subscribers (million)	15.7	13.8

The figures for Tele2 refer to continued operations.

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Kinnevik's holdings

12.5 billion, equivalent to SEK 28.00 per share, to shareholders through a mandatory redemption of shares. Kinnevik expects to receive approximately SEK 3.8bln in cash following the proposed redemption of shares in Tele2.

Bayport

Bayport is offering micro credits and financial services in six African countries (Botswana, Ghana, Mozambique, Tanzania, Uganda and Zambia) as well as in Colombia. The Company was founded in 2002 and has grown with profitability into a leading micro credit company.

Bayport focuses on providing unsecured consumer credit to employees in the formal sector, predominantly within the public sector and civil service, but also with employees of large multinational companies. The success of its business model centres on payroll based credit extension and collection, whereby instalments are directly collected from payroll prior to payment of salaries. This business model mitigates credit risk and adds greater certainty to cash flows.

Loans are used primarily for financing larger non-recurring expenses, such as school fees, investment in farming or for small business purposes. The loan amount varies by market with the average loan amount being USD 1,330 and the average loan term 49 months. Bayport has around 259,000 customers served by a network of 222 branches and over 2,700 employees. Balance sheet assets amount to around USD 440m and the loan book to around USD 340m.

Milvik/BIMA

Milvik provides, under the brand name BIMA, the technology, distribution and insurance solutions which enable mobile telephone operators in emerging markets to provide microinsurance products to their customer base. The company was launched in 2011 to capitalise on the potential in micro insurance in emerging markets where few viable risk management solutions for the mass market exist and the level of insurance penetration is low.

BIMA offers affordable and uniquely designed life and health insurance products to people via their mobile phone. The company is operating in Ghana, Tanzania, Senegal, Mauritius, Bangladesh and Sri Lanka, and insures more than two million lives.

In the first quarter, Milvik raised USD 7m from Kinnevik and other investors to fund continued growth.

Kinnevik's holdings

Change in foil

Online

					Fair value as per 31 March 2013	value
Investment (SEK m)	Direct equity interest	Indirect equity interest 1)	Total	Accumulated invested amount	Direct ownership	Indirectly held 1	Total	Q 1 2013
Zalando GmbH	26%	9%	35%	4685	6076	2 1 7 4	8 2 5 0	$-276$
Bigfoot I (Dafiti, Lamoda, Jabong, partly Namshi)	29%	9%	38%	1536	1 4 3 1	155	1586	34
Bigfoot II (The Iconic, Zalora, partly Zando and Jumia)	31%	10%	42%	930	726	3	729	$-154$
Home24	24%	12%	36%	791	730	35	765	$-7$
Wimdu	29%	12%	41%	361	334	36	370	-9
BigCommerce (Lazada, Linio, partly Namshi)	15%	14%	29%	427	415	25	440	$\circ$
Other Rocket portfolio companies 2)	mixed	mixed	mixed	666	758	282	1 0 4 0	$-42$
Total Rocket Internet with portfolio companies				9 3 9 6	10 470	2710	13 180	-454
Avito	18%	14%	32%	336	592	458	1 0 5 0	127
Other portfolio companies	mixed	mixed	mixed	465	291		291	10
Total unlisted online investments				10 197	11 353	3 1 6 8	14 5 21	$-317$
CDON Group	25.1%	$\overline{\phantom{a}}$	25.1%	$517^{3}$	616	$\overline{\phantom{m}}$	616	$-48$
Total online investments				10714	11 969	3 1 6 8	15 137	-365

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

²⁾ Invested amount includes net invested amount in Rocket Internet GmbH. Fair value includes cash balance in Rocket Internet GmbH.

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

Return Online	1 vear	5 vears
Average yearly internal rate of return (IRR)	17%	30%

The Kinnevik online investments are mainly focused around e-commerce and market places. E-commerce is one of the strongest global growth trends in the world economy, and it is based on a shift in consumer behaviour which is not a short term trend but which we believe represent a permanent change in consumer behaviour.

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

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

Investments and valuation

Kinnevik invested SEK 384m within Online during the first quarter, of which SEK 169m in Bigfoot II, SEK 138m in Big-Commerce and SEK 32m in Saltside Technologies.

At the end of March, unlisted investments in Online (i.e. excluding CDON Group) were valued at a total of SEK 14,521m. The assessed change in fair value recognized in the consolidated income statement amounted to a loss of SEK 317m (loss of 238) for the first quarter, of which a loss of SEK 431m related to negative exchange rate effects when translating investments in EUR to SEK, and a positive amount of SEK 127m related to revalution of Avito.

For further information about valuation principles and assumptions, please see Note 5.

During 2012 and first quarter of 2013, a number of

Kinnevik's holdings

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

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Rocket Internet

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Zalando

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SEK million	Q1	Q2	Q3	Q4	FY2011	Q1	Q2	Q3	Q4	FY2012	Q1 2013
Revenue	271	370	428	632	1 700	795	1 019	1 161	1 645	4 619	1 571
Q on Q growth		37%	16%	47%		26%	28%	14%	42%		-4%
Y on Y growth						194%	176%	171%	160%	172%	98%
EBIT					-355	-232	-330	-432	-316	-1 310	-411
Accum. invested amount (net of dividends received)											10 197
Fair value as per 31 March 2013											14 521
Net proportional part of cash balance 31 March 2013											3 048

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

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Kinnevik's holdings

and marketing. Zalando has over the past five years focused on becoming the industry leader in all these fields in the online sector in the operating markets.

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

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

Zalando reported net sales of EUR 1,159m in 2012 compared to EUR 510m in 2011. In the most established region including Germany, Switzerland and Austria (DACH), Zalando reached break-even (EBIT) while continuing to grow at high rates. At the same time, Zalando invested into new markets to further strengthen its leading position in Europe. As a result of this strategy, Zalando closed 2012 with an improved overall EBIT margin of -7% of sales (2011: -12%). The financial statements for 2012 are now audited.

During the first quarter of 2013 Zalando continued its European growth trajectory, mainly driven by the overall trend towards online shopping and the company's leading market position. With the addition of seven new markets during 2012 Zalando focused on operational excellence in key areas including logistics and marketing and on its current geographical footprint. Construction work at the third warehouse in Mönchengladbach proceeded according to plan.

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

Dafiti, Lamoda, Jabong, Namshi (Bigfoot)

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

• Dafiti was founded in early 2011 and offers a broad assortment of women and men's fashion online. The company started in Brazil, but has since expanded to Ar-

gentina, Chile, Colombia and Mexico, thus targeting one of the largest emerging markets worldwide with a total population of 400 million. Latin America shows strong consumption growth, and Dafiti has established itself as one of the key online retailers in the region.

• Lamoda was started in early 2011 with its core offering being shoes and fashion in Russia and the CIS. The region has an Internet population of more than 60 million and the company is growing rapidly.
• Jabong is one of the leading online fashion websites in India and was launched in 2012. There are more than a billion people living in the country with an Internet penetration of about 10%.
• Namshi is active within shoes and fashion in six markets in the Middle East, namely United Arab Emirates, Saudi Arabia, Bahrain, Kuwait, Oman and Qatar. All markets exhibit high purchase power, high levels of disposable income and high Internet penetration.

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

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

• The Iconic is an online store offering shoes and fashion in Australia and New Zealand covering a population of around 30 million. The company was founded in late 2011 and has since exhibited rapid growth and already captured a leading position in the region.
• Zalora serves eight emerging markets within shoes and fashion in South East Asia, namely Singapore, Malaysia, Indonesia, Thailand, Philippines, Vietnam, Taiwan and Hong Kong.
• · Jumia is an online retailer of general merchandise active in Nigeria, Egypt, Morocco and Kenya. The company offers products such as mobile phones, video and audio devices, games and consoles, books, toys and beauty products.
• Zando targets the attractive South African market with a population of 50 million, and offers shoes and fashion.

Home24

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

Wimdu

Wimdu is a marketplace for brokering short-term vacation housing and was founded in 2011. The company addresses the growing market of rentals of secondary homes and has a worldwide presence, with efforts mainly focused on Western Europe, and over 150,000 available properties. Revenue is derived from commission as intermediary in the rental process.

Kinnevik's holdings

Lazada, Linio (BigCommerce)

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

Avito

Avito is the leading online service for classified advertising in Russia. Revenues primarily derive from from value-added services, third-party shops and display advertising. In the first quarter, the company had an average of 8.5 million new listings per month (5.0 million for the corresponding period last year) and 29.3 million $(24.1)$ unique monthly visitors. During 2012 Avito expanded its operations to Morocco and Egypt. Avito reported total revenue of SEK 202m for the financial year 2012 (2011 SEK 62m).

During the first quarter of 2013, Avito closed a transaction with Naspers, the leading multinational media and internet group based in South Africa, to merge Avito with its leading Russian classifieds websites Slando.ru and OLX. ru. The company will continue to operate under the name Avito. In addition, Avito closed a USD 50m cash investment from Naspers. At the end of the quarter, Avito had a cash position of around USD 100m, which will be used to further strengthen Avito.ru's position in the key Auto and Real Estate categories, and for continued expansion in new markets.

Saltside Technologies

Saltside is a company that since 2012 operates a number of online marketplaces in emerging markets. Some of the key markets are Bangladesh and Sri Lanka, in which Saltside has already seized a prominent position.

CDON Group

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

	Jan-Mar	ruu Year
Key data (SEK m)	2013	2012	2012
Revenue	1 0 5 1	954	4 462
Operating profit/loss, EBIT	-8		$-12 - 174$
Net profit/loss	$-17$		$-13 - 152$

In the first quarter, CDON Group for the first time passed one billion krona in net sales, resulting in a net sales growth of 10% year on year.

The Entertainment segment's sales were up by 6% year-on-year and the segment accounted for 49% (51%) of total sales in the first quarter. Within the Sports & Health segment, CDON Group launched Milestone.com, an online store entirely created for endurance athletes. The company announced that it has entered into an agreement to sell the operations of subsidiary Heppo AB to Footway Group AB.

The Board of CDON Group has resolved on a rights issue of shares with preferential rights to existing shareholders of approximately SEK 500m before transaction costs in order to strengthen CDON Group's capital structure and thereby facilitate the implementation of the Company's growth strategy. Kinnevik intends to subscribe to its pro rata share and to guarantee the remaining part of the issue.

Kinnevik's holdings

Media

Investment (SEK m)	Capital/Votes %	Estimated fair value
Modern Times Group MTG	20.3/49.8	3 497
Metro	99/991)	1 058
Total		4 555
1) Fully diluted.

Return Media	1 year	5 years
Average yearly internal rate of return (IRR)	-25%	-7%

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Modern Times Group MTG

	Jan-Mar		Full Year
Key data (SEK m)	2013	2012	2012
Revenue	3 223	3 259	13 336
Operating profit/loss, EBIT	454	542	2 124
Net profit/loss	334	454	1 594

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Metro

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Readership and Advertising Market

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Operations

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EUR m	2013	2012	2012
Revenue
Europe	17	30	107
Emerging Markets	17	16	80
Head Quarters	2	2	7
Total	36	48	194
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Europe	0	2	10
Emerging Markets	0	1	9
Share of Associates Income	0	0	1
Head Quarters	-2	-2	-10
Total	-2	1	10

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Kinnevik's holdings

Industry and other investments

Investment (SEK m)	Capital/ Votes%	Estimated fair value
BillerudKorsnäs	25.1	3 250
Black Earth Farming	24.9	627
Rolnyvik	100	250
Vireo Energy	78	139
Other		4
Total		4 270

Return Industry and other investments	1 year	5 years
Average yearly internal rate of return (IRR)	43%	14%

BillerudKorsnäs

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Black Earth Farming

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Financial overview

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Consolidated earnings for the first quarter

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The Group's cash flow and investments

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The Group's liquidity and financing

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Kinnevik Annual General Meeting 2013

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Financial reports

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

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

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

CONDENSED CONSOLIDATED INCOME STATEMENT (SEK m)

	Note	2013 1 Jan 31 March	2012 1 Jan 31 March	2012 Full year
CONTINUING OPERATIONS
Revenue		370	102	1 591
Cost of goods sold and services		-222	-67	-957
Gross profit/loss		148	35	634
Selling and administration costs		-205	-52	-771
Other operating income		58	4	92
Other operating expenses		-7	-4	-53
Operating profit/loss	3	-6	-17	-98
Share of profit/loss of associates accounted for using the equity method		3	-	10
Dividends received	6	-	-	4 264
Change in fair value of financial assets	5	-1 580	2 851	-6 910
Interest income and other financial income		3	17	55
Interest expenses and other financial expenses		-31	-60	-255
Profit/loss after financial items		-1 611	2 791	-2 935
Taxes		-10	-7	-56
NET PROFIT/LOSS FROM CONTINUING OPERATIONS		-1 621	2 784	-2 991
Net profit from discontinued operations		-	178	3 473
NET PROFIT/LOSS FOR THE PERIOD		-1 621	2 962	482
Of which attributable to:
Equity holders of the Parent Company
Net profit/loss from continuing operations		-1 616	2 786	-2 984
Net profit/loss from discontinued operations		-	174	3 462
Non-controlling interest
Net profit/loss from continuing operations		-5	-2	-7
Net profit/loss from discontinued operations		-	4	11
Earnings per share
Earnings per share before dilution, SEK		-5.83	10.68	1.72
Earnings per share after dilution, SEK		-5.83	10.68	1.72
From continuing operations:
Earnings per share before dilution, SEK		-5.83	10.05	-10.77
Earnings per share after dilution, SEK		-5.83	10.05	-10.77
Average number of shares before dilution		277 183 276	277 183 276	277 183 276
Average number of shares after dilution		277 520 045	277 479 958	277 483 454

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (SEK m)

	2013 1 Jan 31 March	2012 1 Jan 31 March	2012 Full year
Net profit/loss for the period	-1 621	2 962	482
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified to profit and loss	-	-	-
Items that may be reclassified to profit and loss
Translation differences	-72	-6	-31
Cash flow hedging
- profit/loss during the year	-	-2	-
- reclassification of amounts accounted for through profit and loss	-	-	5
Tax attributable to items that will be reclassified to profit and loss	-	0	-1
Total items that will be reclassified to profit and loss	-72	-8	-27
Total other comprehensive income for the period	-72	-8	-27
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	-1 693	2 954	455
Total comprehensive income for the period attributable to:
Equity holders of the Parent Company	-1 682	2 952	453
Non-controlling interest	-11	2	2

CONDENSED CONSOLIDATED CASH-FLOW STATEMENT (SEK m)

	Note	2013 1 Jan 31 March	2012 1 Jan 31 March	2012 Full year
CONTINUING OPERATIONS
Operating profit/loss		-6	-17	-98
Adjustment for non-cash items		-41	26	114
Taxes paid		0	-41	-88
Cash flow from operations before change in working capital		-47	-32	-72
Change in working capital		80	-50	-150
Cash flow from operations		33	-82	-222
Acquisition of subsidiaries	5	-	-342	-532
Sale of subsidiaries		53	-	106
Investments in tangible and biological fixed assets		-11	-9	-92
Investments in intangible fixed assets		-1	-	-13
Investments in shares and other securities	5	-54	-628	-7 462
Sales of shares and other securities		10	-	572
Dividends received	6	-	-	4 264
Changes in loan receivables		-1	-1	219
Interest received		3	0	55
Cash flow from investing activities		-1	-980	-2 883
Change in interest-bearing liabilities		-44	1 295	1 093
Interest paid		-21	-48	-255
Contribution from holders of non-controlling interest		6	-	32
Dividend paid to equity holders of the Parent company		-	-	-1 524
Dividend paid to holders of non-controlling interest		-	-	-4
Cash flow from financing activities		-59	1 247	-658
CASH FLOW FOR THE PERIOD FROM CONTINUING OPERA
TIONS		-27	185	-3 763
Cash flow for the period from discontinued operations		-	362	4 035
CASH FLOW FOR THE PERIOD		-27	547	272
Exchange rate differences in liquid funds		0	0	0
Cash and short-term investments, opening balance		454	182	182
Cash and short-term investments, closing balance		427	729	454

.

CONDENSED CONSOLIDATED BALANCE SHEET (SEK m)

	Note	2013 31 March	2012 31 March	2012 31 Dec
ASSETS Fixed assets
Intangible fixed assets		914	1 887	1 044
Tangible and biological fixed assets		274	6 506	281
Financial assets accounted to fair value through profit
and loss	5	58 773	63 964	59 953
- whereof interest-bearing		29	211	28
Investments in companies accounted for using the
equity method		86	249	79
Deferred tax assets		11	-	18
		60 058	72 606	61 375
Current assets
Inventories		51	2 105	64
Trade receivables		308	1 153	372
Tax receivables		0	24	36
Other current assets		259	376	331
Short-term investments		13	0	1
Cash and cash equivalents		414	729	453
		1 045	4 387	1 257
TOTAL ASSETS		61 103	76 993	62 632
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity
Equity attributable to equity holders of the Parent
Company		56 893	62 592	58 573
Equity attributable to non-controlling interest		90	113	67
		56 983	62 705	58 640
Long-term liabilities
Interest-bearing loans	7	1 178	8 016	1 174
Provisions for pensions		37	530	37
Other provisions		4	11	4
Deferred tax liability		0	1 042	0
Other liabilities		11	20	14
		1 230	9 619	1 229
Short-term liabilities
Interest-bearing loans	7	2 004	11	2 111
Provisions		25	21	28
Trade payables		127	1 093	156
Income tax payable		31	72	59
Other payables		703	3 472	409
		2 890	4 669	2 763
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		61 103	76 993	62 632

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

	2013 1 Jan 31 March	2012 1 Jan 31 March	2012 Full year
Equity, opening balance	58 640	59 687	59 687
Total comprehensive income for the period	-1 693	2 954	455
Business combination, non-controlling interest	-	56	34
Contribution from non-controlling interest	6	5	32
Dividend paid to owners of non-controlling interest	-	-	-4
Sale of shares, non-controlling interest	28	-	-47
Discontinued operations	-	-	-2
Dividend paid to shareholders of the Parent company	-	-	-1 524
Effect of employee share saving programme	2	3	9
Equity, closing amount	56 983	62 705	58 640
Equity attributable to the shareholders of the Parent Company	56 893	62 592	58 573
Equity attributable to non-controlling interest	90	113	67

	2013	2012	2012
KEY RATIOS	31 March	31 March	31 Dec
Debt/equity ratio	0.06	0.14	0.06
Equity ratio	93%	81%	94%
Net debt	2 763	7 617	2 840

DEFINITIONS OF KEY RATIOS

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.
Net debt	Interest-bearing liabilities including interest-bearing provisions less the sum of inte rest-bearing receivables, short-term investments and cash and cash equivalents.
Operating margin	Operating profit after depreciation divided by revenue.

NOTES

Note 1 Accounting principles

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

Kinnevik apply from this report IFRS 13, "Fair Value Measurement". IFRS 13 is a framework for fair value measurement, but does not change which items that should be measured at fair value. The new standard includes more extensive disclosure requirements on fair value measurement. The new standard has not had any effect on Kinnevik's financial statements. The standard has, however, had effect on the disclosures in note 5, Financial assets.

Other accounting principles and calculation methods applied in this report are the same as those described in the 2012 Annual Report.

Note 2 Risk Management

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

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

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

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

For a more detailed description of the Company's risks and risk management, refer to the Board of Directors' report and Note 31 of the 2012 Annual Report.

Note 3 Related party transactions

Related party transactions for the interim period are of the same character and amounts as the transactions described in the 2012 Annual Report.

Note 4 Condensed segment reporting

Kinnevik is a diversified company whose business consists of managing a portfolio of investments and to conduct operations through subsidiaries. The Kinnevik Group's accounting is distributed on the following three accounting segments: Metro - following the acquisition of Metro on 29 March 2012, Metro is an accounting segment from the second quarter 2012. Other operating subsidiaries - Rolnyvik, Vireo Energy, Duego Technologies, Saltside and G3 Good Governance Group. The figures for 2012 also include Relevant Traffic, disposed during the fourth quarter and Milvik, that is accounted to fair value through profit and loss from 2013.

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

1 Jan-31 March 2013	Metro	Other operating subsidiaries	Parent Company & other	Total Group
Revenue	303	66	1	370
Operating costs	-318	-65	-36	-419
Depreciation	-4	-3	-1	-8
Other operating income and expenses	0	49	2	51
Operating profit/loss	-19	47	-34	-6
Share of profit/loss of associates accounted for
using the equity method	3			3
Change in fair value of financial assets			-1 580	-1 580
Financial net	-2		-26	-28
Profit/loss after financial items	-18	47	-1 640	-1 611
Investments in financial fixed assets			361	361
Investments in tangible, biological and intangible fixed assets	6	7		13

	Other	Parent
	operating	Company &	Total
1 Jan-31 March 2012	subsidiaries	other	Group
Revenue	101	1	102
Operating costs	-92	-25	-117
Depreciation	-1	-1	-2
Other operating income and expenses	0		0
Operating profit/loss	8	-25	-17
Change in fair value of financial assets		2 851	2 851
Financial net	-1	-42	-43
Profit/loss after financial items	7	2 784	2 791
Investments in subsidiaries and financial fixed
assets		3 468	3 468
Investments in tangible, biological and intan
gible fixed assets	9		9

		Other operating	Parent company &	Total
1 Jan-31 Dec 2012	Metro	subsidiaries	other	Group
Revenue	1 234	349	8	1 591
Operating costs	-1 151	-418	-127	-1 696
Depreciation	-18	-11	-3	-32
Other operating income and expenses	4	35		39
Operating profit/loss	69	-45	-122	-98
Share of profit/loss of associates accounted
for using the equity method	10			10
Dividends received			4 264	4 264
Change in fair value of financial assets			-6 910	-6 910
Financial net	-55	-8	-137	-200
Profit/loss after financial items	24	-53	-2 906	-2 935
Investments in subsidiaries and financial fixed
assets	845	110	7 063	8 018
Investments in tangible, biological and intan
gible fixed assets	17	82	6	105
Impairment of goodwill		-22		-22

Note 5 Financial assets

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

Work to measure Kinnevik's unlisted holdings at fair value is performed by the financial department and based on financial information reported from each holding. The correctness of the financial information received is ensured through continuous contacts with management of each holding, monthly reviews of the accounts, as well as internal audits performed by auditors engaged by Kinnevik. Prior to decisions being made about the valuation method to be applied for each holding, and the most suitable peers with which to compare the holding, the financial department obtains information and views from the investment team, as well as external sources of information. Information and opinions on applicable methods and groups of comparable companies are also obtained periodically from well-renowned, valuation companies in the market. The results from the valuation is discussed firstly with the CEO and the Chairman of the Audit Committee, following which a draft is sent to all members of the Audit Committee, who analyze and discuss the outcome before it is approved at a meeting attended by the company's external auditors.

Below is a summary of the valuation methods applied in the accounts as per 31 March 2013.

Company	Valuation method	Valuation assumptions
Rocket Internet GmbH	Portfolio companies valued as per below, cash balance and other assets as per Rocket financial statements.	N/A
Zalando	Latest transaction value, which as per 31 March 2013 is in line with peer group valuation based on sales multiples. The peer group includes, among others, Asos, Amazon and CDON Group.	EUR 2.8bln for entire company. 12 months historic sales results in a sales multiple of 1.8.
Bigfoot I, Bigfoot II, Home24, BigCommerce,	Peer group valuation based on sales multiples. The peer group includes, among others, Asos (not for Home24), Amazon and CDON Group. Direct and indirect shareholding valued in ac cordance with preferential rights at liquidation or divestment of the entire company.	12 months historic sales results in a sales multiple of 1.6 for Home24 and 1.8 for the other companies.
Wimdu, Avito	Peer group valuation based on sales multiples. The peer group includes, among others, Homeaway. Tripadvisor (only for Wimdu) and Rightmove (only for Avito). Direct and indirect shareholding valued in ac cordance with preferential rights at liquidation or divestment of the entire company.	12 months historic sales results in a sales multiple of 3.3 for Wimdu (reduced due to lower profitability compared to peers), and 11.1 for Avito.
Bayport	Valuation based on net profit, book value and growth compared to peers.	Price/Earnings 10 Price/Book value 2.75 Return on equity 27.5% Terminal growth 8% Cost of equity 15%
Milvik, BIMA	Latest transaction value.	USD 17m for entire company.
Other portfolio companies	Fair value corresponds to cost.	N/A

For the companies in the table above that are valued based on sales multiples (i.e. direct and indirect ownership in Bigfoot I, Bigfoot II, Home24, BigCommerce, Wimdu and Avito), an increase in the multiple by 10% would have increased estimated fair value by SEK 256m. Similarly, a decrease in the multiple by 10% would have decreased estimated fair value by SEK 252m.

When establishing the fair value of other financial 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 financial instruments that are valued at fair value in the balance sheet, distributed in the three 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 significant input from data that is not observable in the market.

Change in fair value of financial assets

	2013 1 Jan 31 March	2012 1 Jan 31 March	2012 Full year
Millicom	-1 608	2 270	-4 805
Tele2	-501	149	-2 263
Transcom	127	66	41
Bayport Management	25	1	65
Seamless	25	29	30
Other	3	-	-
Telecom & Financial Services	-1 929	2 515	-6 932
Zalando1)	-203	-57	1 563
Bigfoot I1)	-48	-3	-48
Bigfoot II1)	-152	-	-53
Home 241)	-24	-	-37
Wimdu1)	-11	-	-16
BigCommerce1)	-9	-	-3
Groupon1)	-	-238	-628
Rocket Internet and other portfolio
companies	-7	-175	-165
Avito2)	127	-	538
CDON Group	-48	311	35
Other	10	-3	1
Online	-365	-165	1 187
Metro3)	-	39	39
Modern Times Group MTG	455	485	-1 394
Media	455	524	-1 355
BillerudKorsnäs	88	-	294
Black Earth Farming	171	-23	-104
Industry and other investments	259	-23	190
Total	-1 580	2 851	-6 910
-of which traded in an active market, level 1	-1 291	3 088	-8 755
-of which fair value established using valuation techniques, level 3	-289	-237	1 845

1) Direct shareholding only.

2) Direct shareholding and indirect shareholding via Vosvik.

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

Financial assets accounted at fair value through profit and loss

31 March 2013

		listed companies
	Class	Class	2013	2012	2012
	A shares	B shares	31 March	31 March	31 December
Millicom	37 835 438		19 674	28 358	21 283
Tele2	18 507 492	116 988 645	15 365	18 278	15 867
Transcom	247 164 416	163 806 836	358	255	230
Bayport Management			611	407	586
Milvik/BIMA			49	-	-
Seamless	3 898 371		90	45	65
Other			69	33	71
Telecom & Financial services			36 216	47 376	38 102
Zalando1)			6 076	2 107	6 279
Bigfoot I1)			1 431	1 518	1 479
Bigfoot II1)			726	133	708
Home 241)			730	354	754
Wimdu1)			334	265	345
BigCommerce1)			415	-	286
Groupon1)			-	959	-
Rocket Internet and other portfolio companies			3 468	3 499	3 451
Avito2)			1 050	336	923
CDON Group	16 639 607		616	940	664
Other			211	110	179
Online			15 057	10 221	15 068
Modern Times Group MTG	5 119 491	8 384 365	3 497	4 921	3 042
Other			81	128	84
Media			3 578	5 049	3 126
BillerudKorsnäs	51 827 388		3 250	-	3 161
Black Earth Farming	51 811 828		627	404	456
Other			3	665	3
Industry and other investments			3 880	1 069	3 620
Parent Company and other			42	249	37
Total			58 773	63 964	59 953
-of which traded in an active market, level 1			43 477	54 160	44 768
-of which fair value established using valuation techniques, level 3			15 296	9 804	15 185

1) Direct shareholding only.

2) Direct shareholding and indirect shareholding via Vosvik.

Investments in shares and securities

SEKm	2013 1 Jan 31 March	2012 1 Jan 31 March	2012 Full year
Subsidiaries
Metro (net of acquired cash balance)	-	342	438
G3 Group (net of acquired cash balance)	-	-	89
Other	-	-	5
Cash flow from investments in subsidiaries	-	342	532
Other shares and securities
Bayport	-	-	116
Seamless	-	16	35
Other	9	-	36
Total Telecom & Financial services	9	16	187
Zalando	-	1 105	3 658
Bigfoot I	-	997	1 003
Bigfoot II	169	-	532
Home24	-	-	428
Wimdu	-	-	86
BigCommerce	138	-	289
Rocket Internet with other portfolio companies	24	577	631
Avito	-	-	50
Other	21	1	67
Total Online	352	2 680	6 744
Metro	-	-	19
Total Media	-	-	19
Black Earth Farming	-	-	132
Total Industry and other investments	-	-	132
Total investments other shares and securities	361	2 696	7 082
-of which traded in an active market, level 1	-	16	167
-of which fair value established using valuation techniques, level 3	361	2 680	6 915
- of which paid during the period	54	168	6 972
Paid on investments made in earlier periods	-	460	490
Cash flow from investments in other shares and securities	54	628	7 462
Financial assets valued accounted to fair value, level 3
	2013	2012	2012
	1 Jan	1 Jan	Full
	31 March	31 March	year
Opening balance, book value	15 185	7 243	7 243
Acquisitions	361	2 680	6 981
Reclassification	49	128	-
Disposals	-7	-	-656
Amortization on loan receivables	-	-	-210
Change in value through the income statement	-289	-237	1 845
Other	-3	-10	-18
Closing balance, book value	15 296	9 804	15 185

Note 6 Dividends received

	2013 1 Jan 31 March	2012 1 Jan 31 March	2012 Full year
Millicom	-	-	1 407
Tele2	-	-	1 761
MTG	-	-	122
Rocket Internet	-	-	974
Total dividends received	-	-	4 264
Of which ordinary dividends	-	-	1 659

Note 7 Interest-bearing loans

	2013	2012	2012
	31 March	31 March	31 Dec
Interest-bearing long-term loans
Liabilities to credit institutions	-	8 060	-
Capital markets issues	1 201	-	1 199
Accrued borrowing cost	-23	-44	-25
	1 178	8 016	1 174
Interest-bearing short-term loans
Liabilities to credit institutions	1 211	11	1 268
Capital markets issues	794	-	843
	2 004	11	2 111
Total long and short-term interest-bearing loans	3 182	8 027	3 286

Kinnevik's total credit facilities (including issued bonds) amounted to SEK 8,040m as at 31 March 2013 whereof SEK 6,500m related to a revolving credit facility and SEK 1,200m related to a bond.

Out of the total amount of outstanding loans as per 31 March 2013, SEK 1,994m related to short-term funding under a commercial paper program and a put/call credit facility. The refinancing risk of these short term loans is minimized by always keeping the same amount available under Kinnevik's revolving credit facility.

At 31 March 2013 the Group had not provided any security for any of its outstanding loans.

The outstanding loans carry an interest rate of Stibor or similar base rate with an average margin of 1.0% (1.3%). All bank loans have variable interest rates (up to 3 months) while financing from the capital markets vary between 1 to 12 months for the loans under the commercial paper program and 5 years for the outstanding bond. As per 31 March 2013, the average remaining duration was 2.9 years for all credit facilities including the bond (but excluding the unutilized one year extension option related to the Group's SEK 6.500m credit facility).

Of the Group's interest expenses and other financial costs of SEK 31m (60), interest expenses amounted to SEK 21m (52). The average interest rate for the first quarter was 2.6 % (4.2 %) (calculated as interest expense in relation to average interestbearing liabilities).

CONDENSED PARENT COMPANY INCOME STATEMENT (SEK m)

	2013 1 Jan 31 March	2012 1 Jan 31 March	2012 Full year
Revenue	1	4	20
Administration costs	-34	-24	-121
Other operating income	4	0	0
Operating loss	-29	-20	-101
Dividends received	-	-	3 900
Result from financial assets	0	33	-10
Net interest income/expense	89	91	327
Profit/loss after financial items	60	104	4 116
Group contributions	-	-	-300
Profit/loss before taxes	60	104	3 816
Taxes	0	-19	-24
Net profit/loss for the period	60	85	3 792

CONDENSED PARENT COMPANY BALANCE SHEET (SEK m)

	2013 31 March	2012 31 March	2012 31 Dec
ASSETS
Tangible fixed assets	3	2	3
Financial fixed assets	51 699	42 488	51 704
Short-term receivables	337	920	290
Cash and cash equivalents	44	1	12
TOTAL ASSETS	52 083	43 411	52 009
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity	41 048	38 799	40 986
Provisions	30	31	30
Long-term liabilities	3 957	4 470	3 177
Short-term liabilities	7 048	111	7 816
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	52 083	43 411	52 009

The Parent Company's liquidity, including short-term investments and unutilized credit facilities, totalled SEK 4,880m at 31 March 2013 and SEK 4,587m at 31 December 2012. The Parent Company's interest bearing external liabilities amounted to SEK 3,219m (3,257) on the same dates.

Investments in tangible fixed assets amounted to SEK 0m (0) during the period. Distribution by class of shares on 31 March 2013 and 31 December 2012 was as follows

	Number of shares	Par value (SEK 000s)
Outstanding Class A shares, 10 votes each	48 665 324	4 867
Outstanding Class B shares, 1 vote each	228 517 952	22 851
Class B shares in own custody	135 332	14
Class C shares in own custody	264 582	26
Registered number of shares	277 583 190	27 758

The total number of votes in the Company amounted at 31 March 2013 to 715,571,106 (715,171,192 excluding 264,582 class C and 135,332 class B treasury shares).

The Board has authorization to repurchase a maximum of 10% of all shares in the Company. The Board has not used the authorization during 2012 or 2013. There are no convertibles or warrants in issue.