Kinnevik

Quarterly Report • Jul 19, 2019

INTERIM REPORT 1 JANUARY - 30 JUNE 2019

"It was an eventful second quarter, during which we focused our efforts on continuing the shift in our portfolio towards growth companies. These efforts included supporting high-performers in our private portfolio, evaluating our Millicom stake and supporting the IPO of Global Fashion Group."

Georgi Ganev, CEO of Kinnevik

KEY PORTFOLIO DEVELOPMENTS

• Global Fashion Group began trading on the Frankfurt Stock Exchange on 2 July. The company raised a total of c. EUR 200m, of which EUR 60m from Kinnevik, to fuel continued growth
• Livongo announced its intention to go public at a proposed price range corresponding to a fully diluted pre-money valuation of USD 2.1-2.4bn. Kinnevik has agreed to purchase additional shares at the IPO price from one of Livongo's investors, and we have also indicated our interest in purchasing newly issued shares in the IPO

INVESTMENT MANAGEMENT ACTIVITIES

• Total investments of SEK 1,367m during the quarter, whereof SEK 632m in GFG, SEK 336m in Kolonial, SEK 156m in Monese, SEK 85m in Pleo and SEK 157m in other existing assets
• During the quarter Kinnevik announced an intention to divest and distribute the shareholding in Millicom. While the twostep divestment could not be concluded at terms we found agreeable, Kinnevik remains frmly committed to continuing to strengthen our fnancial position and evolve the portfolio towards a higher proportion of growth companies. Consequently, we continue to evaluate potential next steps in relation to our shareholding in Millicom

FINANCIAL POSITION

• Net asset value of SEK 89.0bn (SEK 323 per share), up SEK 4.7bn or 6% during the quarter, primarily driven by positive share price development in Zalando and Tele2, furthered by upwards revisions of the fair values of both Livongo and Babylon, partially offset by the decline in value of Global Fashion Group
• Net debt position increased by SEK 1.7bn to SEK 5.7bn, resulting in leverage of 6.0% of Portfolio Value

SEKm		30 Jun 2019	31 Mar 2019	31 Dec 2018	30 Jun 2018
Net Asset Value		89 049	84 257	70 503	96 409
Net Asset Value per share, SEK		322.97	305.59	255.71	350.42
Share Price, SEK		241.00	239.80	213.00	306.80
Net Debt		-5 679	-4 003	-2 887	-2 902
SEKm	Q2 2019	Q2 2018	H1 2019	H1 2018	FY 2018
Net Proft/Loss	5 961	5 344	19 703	8 047	-13 656
Net Proft/Loss per Share, SEK	21.60	19.39	71.38	29.20	-49.58
Change in Fair Value of Financial Assets	5 135	4 195	18 937	6 755	-15 184
Dividends Received	889	1 220	889	1 438	1 887
Dividend Paid	-1 169	-2 270	-1 169	-2 270	-6 497
Investments	1 367	789	2 415	810	2 731
Divestments	22	89	59	101	1 610

Chief Executive's Review

Dear Shareholders,

It was an eventful second quarter, during which we focused our efforts on continuing the shift in our portfolio towards growth companies. These efforts included supporting high-performers in our private portfolio, evaluating our Millicom stake and supporting the IPO of Global Fashion Group. I strongly believe that diversity and inclusion is an important driver in any transformation, and during the quarter we therefore announced clear targets to drive this at Kinnevik as well as in our portfolio companies.

OUR SECOND QUARTER RESULTS

Kinnevik's Net Asset Value increased by 6 percent to SEK 89.0bn, or SEK 323 per share, in the second quarter, supported mainly by the positive development in the share prices of Zalando and Tele2. The value of our unlisted assets increased to SEK 16.5bn driven by increased value of Babylon and Livongo, and by the investment of additional capital in some of our newer companies such as Kolonial, Pleo and Monese, partially offset by the decline in value in Global Fashion Group. We ended the quarter with a net debt position of SEK 5.7bn, corresponding to a leverage of 6 percent of Portfolio Value, well within our leverage target. Tele2 has proposed an extraordinary dividend drawing from the proceeds from the transactions in Kazakhstan and the Netherlands, which will strengthen our fnancial position by SEK 1.1bn by the end of August.

OUR TMT ASSETS

Tele2 and Millicom continue to lay the foundation for future growth through focusing their respective market footprints and strengthening their FMC capabilities and offerings.

The integration work at Tele2 continues at a high pace, realizing another SEK 100m of synergies in Q2, reaching the full year run-rate target well ahead of plan. During the quarter, Tele2 also closed the sale of its operations in Kazakhstan and divested its Croatian business. Millicom continues to focus on its Latin American markets, completing the acquisition of mobile operations in Nicaragua during the quarter, as well as was divesting the company's business in Chad.

In the beginning of June 2019, we announced our intention to divest our shareholding in Millicom through a public offering of shares in Millicom and a subsequent distribution of Kinnevik's remaining shareholding to our shareholders. During the process, it became clear that the envisioned twostep divestment could not be completed at a price which we found suffciently attractive for our shareholders, and we therefore decided to withdraw the offering. However, we remain frmly committed to continuing to strengthen our fnancial position and to evolve our portfolio towards a higher proportion of growth companies. This includes maximizing returns from a successful and long-standing investment in a company such as Millicom and we therefore continue to evaluate potential next steps in relation to our shareholding.

IPOS OF GLOBAL FASHION GROUP AND LIVONGO

Global Fashion Group went public on the Frankfurt Stock Exchange in early July raising some EUR 200m in the IPO, of which Kinnevik participated with EUR 60m. We decided to support the IPO as we believe the company has made signifcant progress under its new management and that this is the right time to ensure that the company is funded to execute on its strategic plan. The frst quarter showed strong growth as the company continued to build its brand platform and attract new customers as structural adoption of mobile and e-commerce continues across the company's markets.

Livongo, the digital health company empowering people with chronic conditions, has announced its intention to go public. In connection with the IPO, Kinnevik has agreed to purchase additional shares at the IPO price from one of Livongo's investors. We have also indicated our interest in purchasing newly issued shares in the IPO. I look forward to telling you more about Livongo when the IPO has completed.

HIGH-PERFORMERS IN THE PRIVATE PORTFOLIO

Our unlisted assets continue to perform strongly. The revaluation of Babylon is underpinned by signifcant improvements in the platform and the roll out of new international partnerships.

We also continue to invest additional capital in high-performers to support their growth agendas. During the second quarter we invested an additional SEK 336m in Kolonial, SEK 156m in Monese and SEK 85m in Pleo.

Monese is growing rapidly and recently launched a collaboration with PayPal that expands its customers' access to fnancial tools and the global economy. Pleo is expanding its business across the UK, Denmark, Germany and Sweden, and is attracting strong interest from both customers and investors. Pleo will use the capital raised in its latest funding round to triple the size of its team and to accelerate its product development as it plans to add more services to its offering to SMEs in Europe.

DIVERSITY AND INCLUSION

During the quarter, we adopted a framework to drive diversity and inclusion at Kinnevik and in our portfolio companies. We have earmarked 10 percent of our annual investment budget for female founded or led companies. With clear KPIs and a strong commitment from both our Board and my management team, I am convinced that the initiative will ensure we build stronger and better companies.

CONCLUDING REMARKS

With positive momentum across all our assets, and particularly exciting developments in a number of our private companies, I feel that we have a very strong foundation for future value creation. I look forward to meeting many of you here in Stockholm on 19 September at our Capital Markets Day to elaborate further on our strategy. You will also meet several of the founders and leaders of the companies that form part of our future growth story. Until then, I hope you will enjoy the summer!

Georgi Ganev Chief Executive Offcer

Kinnevik in summary

Kinnevik is an industry focused investment company with an entrepreneurial spirit. Our purpose is to build digital businesses that provide more and better choice. We do this by working in partnership with talented founders and management teams to create, develop and invest in fast growing businesses in developed and emerging markets. We believe in delivering both shareholder and social value by building companies that contribute positively to society. Kinnevik was founded in 1936 by the Stenbeck, Klingspor and von Horn families. Kinnevik's shares are listed on Nasdaq Stockholm's list for large cap companies under the ticker codes KINV A and KINV B.

INVESTMENT ACTIVITY

PORTFOLIO DEVELOPMENT

PORTFOLIO COMPOSITION PORTFOLIO RETURN RATES

One and fve-year returns are annualized internal rates of return (IRR). The returns are based on fair values at the beginning and end of the respective period, includes cash and non-cash items and is calculated on a SEK gross basis.

TMT Net Cash/(Debt) Financial Services Total Portfolio

Net Asset Value

SEKm	Fair Value 2019 30 Jun	Fair Value 2019 31 Mar	Fair Value 2018 31 Dec	Fair Value 2018 30 Jun	Total Return 2019 1
Zalando	32 335	28 417	17 924	39 165	80%
Global Fashion Group	3 761	4 069	3 284	5 047	-4%
Quikr	1 542	1 751	1 643	1 575	-6%
MatHem	889	889	-	-	-
Kolonial	695	325	309	-	8%
Qliro Group	498	423	391	568	27%
Omio	464	464	443	-	5%
Other 2	1 229	1 304	1 448	1 954	-17%
Total E-Commerce & Marketplaces	41 413	37 642	25 442	48 309	52%
Tele2	25 440	23 264	21 172	16 021	22%
Millicom	19 712	21 358	21 169	19 883	-5%
Com Hem	-	-	-	4 921	-
MTG	-	-	-	5 045	-
Other	149	169	164	273	-27%
Total TMT	45 301	44 791	42 505	46 143	9%
Bayport	1 234	1 226	1 172	1 182	5%
Betterment	1 213	1 206	1 153	1 163	5%
Bima	987	987	873	881	4%
Other 2	1 383	966	938	224	18%
Total Financial Services	4 817	4 385	4 136	3 450	9%
Livongo	1 765	732	700	584	152%
Babylon	1 225	537	500	518	112%
Cedar	195	148	142	143	3%
Total Healthcare	3 185	1 417	1 342	1 245	117%
Other	4	5	4	35	-
Total Portfolio Value	94 720	88 240	73 430	99 182	26%
Net Cash / (Net Debt)	-5 679	-4 003	-2 887	-2 902	-
Other Net Assets / (Liabilities)	8	20	-39	129	-
Total Net Asset Value	89 049	84 257	70 503	96 409	28%
Net Asset Value per Share, SEK	322.97	305.59	255.71	350.42	28%
Closing Price, Class B Share, SEK	241.00	239.80	213.00	306.80	15%

¹ Includes investments and divestments.

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 local-LVHG RIIHULQJ =DODQGR DGGUHVVHV FRXQWU\ VSHFLğF FXVtomer preferences in each of its 17 European markets.

• Zalando reported Q1 2019 revenue and GMV growth of 15% and 23% respectively with an Adjusted EBIT margin of 0.5%
• The Partner Program is growing steadily, with solid increases in both active users and orders per active user, contributing to the strong growth in GMV during the quarter
• Zalando opened its sixth and seventh outlets in Münster and Stuttgart, and announced that two additional outlets will open in 2021

Qliro Group is a Nordic e-commerce group in con-VXPHU JRRGV DQG FRPSOHPHQWDU\ ğQDQFLDO VHUYLFHV Qliro Group operates CDON Marketplace, Nelly and Qliro.

• Qliro Group reported negative revenue growth in Q2 2019 of 10% as CDON marketplace continues its transition from an inventory-based model towards a marketplace offering
• Qliro grew its loan book with 41% to over SEK 1.7 billion, driven by the personal loan segment. Total operating income increased by 21%
• Nelly continues to focus on growth with revenue growing 5% and average order value 8% during the quarter

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 went public on the Frankfurt Stock Exchange on 2 July, raising c. EUR 200m in the IPO
• NMV growth of 22% in Q1, with growth particularly strong in Asia Pacifc. The Q1 2019 EBITDA margin of -10% represented a 2pp yearly improvement
• Marketplace share of NMV grew to 19% in Q1 2019. This shift supports a higher gross margin, which increased by 1pp annually to 38%
• Number of active customers up 15% to 11.5m, and the average order frequency grew by up 8%

Go to company website > Go to company website >

QXLNU LV DQ RQOLQH FODVVLğHGV SODWIRUP RSHUDWLQJ LQ India. Quikr serves over 20 million unique monthly YLVLWRUV DQG IRFXVHV LWV RSHUDWLRQV RQ ğYH YHUWLFDOV Goods, Cars & Bikes, Jobs, Homes, and Services.

• Based on the frst half of 2019, Quikr generated just under USD 65m in annualised cash revenue at a year on year growth rate of just under 70%
• Over half of Quikr's revenue is now generated from commissions on transactions taking place on its platform, rather than traditional listing fees
• The company now manages nearly 150,000 beds under its managed rental offering wherein tenants rent all-inclusive long-term accommodation directly from Quikr

17% SEK 1.5BN

KINNEVIK STAKE FAIR VALUE

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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 398m in Q1 2019 representing 27% yearly growth, partially fuelled by the acquisition of Fruktbudet in Q2 2018
• Last twelve months net revenues as of Q1 2019 was SEK 1.4bn, and MatHem completed close to 1.3 million deliveries during the last twelve months
• MatHem has continued to improve its delivery offering, ramping up same-day, weekend and archipelago deliveries in 2019

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.

• 2018 was a year with focus on operational improvements with annual growth slowing down to some 15% (down from around 90% the year before), and the company is now investing to accelerate growth
• The company offers close to 6,000 SKUs, the most comprehensive online offering within food in Norway, in line with large offine stores
• On the fulflment side, Kolonial is continuing to make progress towards its ambitious targets, increasing effciency on a monthly basis

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24% SEK 695M

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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.

• In Q2 2019, Onsite Booking Volumes grew about 60% year on year despite the recent rebranding initiative and corresponding organizational changes initiated for the envisaged global expansion
• Omio's NPS reached an all-time high in Q2 refecting continuous improvements of product and coverage

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TMT

Millicom is a provider of cable and mobile services dedicated to emerging markets in Latin America and Africa. The company offers high-speed broadband and digital lifestyle services through its principal brand Tigo.

• Millicom reported Latin American organic service revenue growth of 2.0%, and organic growth in OCF (EBITDA less capex) of 6.4%
• The company added 94,000 subscribers to its fxed footprint, and 540,000 4G data customers
• Focus on Latin America continues, with the completion of the Nicaragua acquisition and disposal of Chad
• Kinnevik continues to evaluate potential next steps in relation to our shareholding

7HOH2 RIIHUV PRELOH VHUYLFHV ğ[HG EURDGEDQG DQG telephony, data network services, content services and global IoT solutions to 17 million customers in 7 countries across Europe.

• Tele2 reported slightly declining revenue and end-user revenue in Q2 2019, with an Underlying EBITDA margin of 33%
• Tele2 realized another SEK 100m of synergies, reaching the full year run-rate target of SEK 450m already after six months
• The FMC strategy continues to be fruitful with 93,000 customers now on FMC offers
• Proposed extraordinary dividend of SEK 6.00 per share to distribute proceeds from the divestments in Kazakhstan and the Netherlands

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27% SEK 25.4BN KINNEVIK STAKE

FAIR VALUE

Financial Services

%HWWHUPHQW LV WKH ODUJHVW LQGHSHQGHQW RQOLQH ğQDQFLDO advisor in the United States. The company operates a vertically integrated platform that provides fully automated, personalised advice and access to low cost, JOREDOO\ GLYHUVLğHG LQYHVWPHQW SRUWIROLRV

• Assets under management amounted to USD 17.7bn at the end of June 2019, an annual increase of 25%. Number of customers totalled over 437,000, a yearly increase of 20%
• In Q2, the company announced a new fund family that advisors can use to manage clients' investments, called Dimensional Fund Advisors. Advisors will be able to design and manage Dimensional fund portfolios directly via Betterment for Advisors
• Betterment also debuted Paperless ACATS, a system for transferring securities in a client's account at another frm

%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 Q2 2019, Bayport's customer base amounted to 520,000 customers, representing annual growth of 11%, with the company's businesses in Colombia and Mexico performing particularly strong, exceeding targets signifcantly
• Bayport issued its frst Social Bond of USD 260m on the Nasdaq Stockholm Sustainable Bond list, a recognition of the positive social impact of Bayport's product and service offering
• Two senior hires completed during the quarter, both female, strengthening Bayport's management team and furthering its diversity agenda

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16% SEK 1.2BN KINNEVIK STAKE FAIR VALUE

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22% SEK 1.2BN

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

• At the end of June 2019, Bima had 5.4 million active customers, representing a yearly increase of 16%
• In Q2 2019, Bima continued to strengthen its product suite and expand its health services, launching new mHealth and life insurance in Ghana

Healthcare

Babylon is a digital healthcare service company based in the United Kingdom. Combining mobile tech and DUWLğFLDO LQWHOOLJHQFH ZLWK PHGLFDO H[SHUWLVH %DE\ lon'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, was rated "Good" by the Care Quality Commission and continued to grow to over 55,000 registered patients. In June, the service was rolled out in Birmingham, the frst city outside London
• Babylon and Telus launched its service in Canada, allowing people in British Columbia to check their symptoms, consult with doctors and easily access their clinical records
• The company is building an enterprise-grade integrated medical AI platform, that sees the company expand beyond AI-driven triage selectively into diagnosis and predictive analytics. The goal is to go beyond managing sickness and to start predicting health outcomes that allow the creation of preemptive health solutions

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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.

• Livongo launched its IPO roadshow on 15 July, valuing the business at a fully diluted pre-money equity value of USD 2.1-2.4bn
• Livongo announced a bi-directional integration with the top smart watches in the market, including leading models from Apple, Fitbit and Samsung
• The fndings of a study demonstrated that 94% of Livongo for Diabetes Members who completed the survey achieved an improved Diabetes Empowerment Scale in year one of the program
• Livongo for Behavioural Health launched a set of evidence-based activities and tools to guide Members in addressing challenges associated with pregnancy and early parenting

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9% SEK 1.8BN KINNEVIK STAKE FAIR VALUE

Financial review

INVESTMENT ACTIVITY

Investee Company (SEKm)	Q2 2019	H1 2019
MatHem	-	889
GFG	632	632
Kolonial	336	336
Monese	156	156
Pleo	85	85
Babylon	76	78
Bima	-	73
Cedar	47	47
Budbee	-	46
Travelperk	-	24
Other	35	49
Investments	1 367	2 415
Other	22	59
Divestments	22	59
Net Investments / (Divestments)	1 345	2 356

DIVIDEND AND CAPITAL STRUCTURE

As at 30 June 2019, Kinnevik carried net debt of SEK 5.7bn, corresponding to a leverage of 6% of Portfolio Value.

For the fnancial year 2018, the AGMs of Kinnevik, Millicom and Tele2 resolved on the following dividends, to be split on two payment occasions, in May and November:

Company (SEKm)		Amount
Millicom	USD 2.64 per share	940
Tele2	SEK 4.40 per share	825
Dividends Received		1 765
Received in Q2		889
Dividends Paid	SEK 8.25 per share	2 272
Paid in Q2	SEK 4.25 per share	1 169

Note: Millicom's second dividend tranche translated at USD/SEK of 9.27.

On 17 July, Tele2 convened an EGM to vote on a proposed extraordinary dividend of SEK 6 per share on 22 August. Kinnevik is expected to receive SEK 1,126m in late August.

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.

Increasing Shareholder Remuneration

Kinnevik aims to pay an annual dividend growing in line with dividends received from our investee companies and the cash fow generated from our investment activities.

Kinnevik will make share buybacks when our shares trade at a signifcant discount to their intrinsic value, as perceived by Kinnevik, and the company has signifcant net cash (taking into consideration its dividend expectations, net investment plan and operating cost).

ORGANISATION

On 17 June, it was announced that Kinnevik's CFO Joakim Andersson and Investment Director Lars-Åke Norling will leave Kinnevik. Joakim Andersson will remain in his role until 31 December or until a new CFO is in place. Lars-Åke Norling will leave Kinnevik on 1 September, and will remain a senior advisor to Kinnevik.

EVENTS AFTER THE REPORTING PERIOD

On 2 July, Global Fashion Group began trading on the Frankfurt Stock Exchange. The company raised a total of c. EUR 200m, of which EUR 60m from Kinnevik, to fuel continued growth.

On 15 July, Livongo announced its intention to go public at a proposed price range corresponding to a fully diluted pre-money valuation of USD 2.1-2.4bn. Kinnevik has agreed to purchase additional shares at the IPO price from one of our co-investors, and we have also indicated our interest in purchasing newly issued shares in the IPO.

TOTAL SHAREHOLDER RETURN

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.

VALUATION OF UNLISTED FINANCIAL ASSETS

	Change in fair value and dividends received
Investment (SEKm)	Kinnevik's Ownership	Net Invested Amount	Fair Value 30 Jun 2019	Apr-Jun 2019	Jan-Jun 2019
Global Fashion Group 1	40%	6 290	3 761	-940	-155
Budbee	24%	126	224	-	98
Kolonial	24%	664	695	34	50
MatHem	38%	889	889	-	-
Quikr	17%	879	1 542	-209	-101
Saltside	61%	195	201	-	2
Omio	6%	443	464	-	21
Travelperk	15%	251	460	208	213
Other 1	Mixed	114	80	2	9
Total E-Commerce & Marketplaces		9 850	8 316	-905	138
Total TMT	Mixed	1 136	149	-46	-55
Bayport 2	22%	467	1 234	8	62
Betterment	16%	1 065	1 213	7	60
Bima	36%	330	987	-	41
Bread	13%	307	312	-	14
Deposit Solutions	7%	263	286	4	12
Monese	16%	353	365	-7	7
Pleo	13%	152	345	191	193
Other	Mixed	86	75	-3	-11
Total Financial Services		3 023	4 817	200	378
Babylon	20%	508	1 225	612	647
Livongo 2	9%	569	1 765	1 033	1 065
Cedar	10%	188	195	-	6
Total Healthcare		1 265	3 185	1 645	1 718
Other	Mixed	-	4	-1	-
Total Unlisted Financial Assets		15 274	16 471	892	2 179

¹ Net invested amounts include in aggregate SEK 1.0bn in non-cash investments through received share distributions.

² Ownership on a fully diluted as converted basis.

FAIR VALUES AS AT 30 JUNE 2019

At the end of June, the fair value of Kinnevik's unlisted fnancial assets amounted to a total of SEK 16,471m, to be compared with an accumulated invested amount (net after dividends received) of SEK 15,274m. The change in fair value, plus dividends received, amounted to SEK 892m in the quarter, as specifed in the table on the previous page.

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.

E-COMMERCE & MARKETPLACES

The fair value of Kinnevik's 40 percent shareholding in Glo-EDOb)DVKLRQb*URXS amounts to SEK 3,761m, based on the fnal pricing in the company's Initial Public Offering, completed on 2 July.

The fair value of Kinnevik's 24 percent shareholding and other interest in Kolonial amounts to SEK 695m, 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, 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 2.35bn. The valuation is based on trailing and forward-looking revenue multiples of a peer group of inventory-holding e-commerce retailers, and corresponds to the valuation in a funding round during Q1 2019.

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 17 percent shareholding in Quikr amounts to SEK 1,542m, based on a total value of Quikr's fully diluted equity of USD 969m. The valuation of Quikr is based on a discounted cash fow analysis as well as forward-looking revenue multiples of a peer group of emerging market online classifeds companies.

The fair value of Kinnevik's 61 percent shareholding in Saltside amounts to SEK 201m. The valuation of Saltside is based on a discounted cash fow analysis as well as forward-looking revenue multiples of a peer group of emerging market online classifeds companies.

The fair value of Kinnevik's 6 percent shareholding in Omio amounts to SEK 464m 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 Travelperk amounts to SEK 460m 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 1,234m, based on a total value of Bayport's fully diluted equity of USD 611m. The valuation of Bayport is based on trailing and forward price-to-earnings and price-to-book multiples of a peer group of consumer fnance companies.

The fair value of Kinnevik's 16 percent shareholding in Betterment amounts to SEK 1,213m, based on a total value of Betterment's fully diluted equity of USD 805m. The valuation of Betterment is based on a discounted cash fow analysis.

The fair value of Kinnevik's 36 percent shareholding in Bima amounts to SEK 987m, based on a total value of Bima's fully diluted equity of approximately USD 300m. The valuation is based on a a discounted cash fow analysis, and corresponds to the valuation in a funding round in Q1 2019.

The fair value of Kinnevik's 13 percent shareholding in Bread amounts to SEK 312m and is based on forward-looking revenue multiples of a peer group of software, software-as-aservice, payments, and lending companies, and corresponds to the valuation in a funding round during Q3 2018.

The fair value of Kinnevik's 7 percent shareholding in Deposit Solutions amounts to SEK 286m, based on a total value of Deposit Solution's equity of approximately EUR 394m. The valuation is based on forward-looking revenue multiples of a peer group of software-as-a-service, software licensing, and fnancial technology companies, and corresponds to the valuation in a funding round during Q3 2018.

The fair value of Kinnevik's 16 percent shareholding and other interest in Monese amounts to SEK 365m 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 345m and is based on forward-looking revenue multiples of a peer group of software-as-a-service companies and corresponds to the valuation in a funding round during Q2 2019.

HEALTHCARE

The fair value of Kinnevik's 20 percent shareholding and other interest in Babylon amounts to SEK 1,225m, and is based on forward-looking revenue multiples of a peer group of disruptive healthcare and healthcare IT companies.

The fair value of Kinnevik's 9 percent fully diluted shareholding in Livongo amounts to SEK 1,765m, and is based on forwardlooking multiples of a peer group of disruptive healthcare, healthcare IT and software-as-a-service companies, and corresponds to the low end of the IPO price range.

The fair value of Kinnevik's 10 percent shareholding in Cedar amounts to SEK 195m, and is based on forwardlooking 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	2019 1 Apr 30 Jun	2018 1 Apr 30 Jun	2019 1 Jan 30 Jun	2018 1 Jan 30 Jun	2018 Full year
Change in fair value of fnancial assets	4	5 135	4 195	18 937	6 755	-15 184
Dividends received	5	889	1 220	889	1 438	1 887
Administration costs		-83	-57	-139	-129	-339
Other operating income		40	6	42	14	32
Other operating costs		0	-5	0	-5	-5
2SHUDWLQJ SURğWORVV		5 981	5 359	19 729	8 073	-13 609
Financial net		-20	-22	-26	-26	-46
3URğWORVV DIWHU ğQDQFLDO QHW		5 961	5 337	19 703	8 047	-13 655
Tax		0	0	0	0	-1
1HW SURğWORVV IRU WKH SHULRG		5 961	5 337	19 703	8 047	-13 656
Net proft/loss per share before dilution		21.62	19.42	71.46	29.25	-49.58
Net proft/loss per share after dilution		21.60	19.39	71.38	29.20	-49.58
7RWDO FRPSUHKHQVLYH LQFRPH IRU WKH SHULRG		5 961	5 337	19 703	8 047	-13 656
Outstanding shares at the end of the period		275 717 450	275 130 169	275 717 450	275 130 169	275 717 450
Average number of shares before dilution		275 717 450	275 123 164	275 717 450	275 120 829	275 416 805
Average number of shares after dilution		276 028 638	275 572 564	276 041 356	275 571 468	275 818 034

CONSOLIDATED EARNINGS FOR THE SECOND QUARTER

The change in fair value of fnancial assets including dividends received amounted to a proft of SEK 6,024m (5,415) for the second quarter of which a proft of SEK 5,132m (5,201) was related to listed holdings and a proft of SEK 892m (214) was related to unlisted holdings. See note 4 and 5 for further details. Improved fnancial net is due to lower borrowing costs and exchange differences.

CONSOLIDATED EARNINGS FOR THE FIRST SIX MONTHS OF THE YEAR

The change in fair value of fnancial assets including dividends received amounted to a proft of SEK 19,826m (8,193) for the frst six months of the year of which a proft of SEK 17,647m (7,661) was related to listed holdings and a proft of SEK 2,179m (532) was related to unlisted holdings. See note 4 och 5 for further details.

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SEK m	Note	2019 1 Apr 30 Jun	2018 1 Apr 30 Jun	2019 1 Jan 30 Jun	2018 1 Jan 30 Jun	2018 Full year
Dividends received	5	889	1 220	889	1 337	1 887
Cash fow from operations		-26	-53	-95	-157	-260
&DVK ĠRZ IURP RSHUDWLRQV EHIRUH LQWHUHVW QHW DQG LQFRPH WD[HV		863	1 167	794	1 180	1 627
Interest, received		0	0	0	0	0
Interest, paid		-14	-13	-37	-29	-48
&DVK ĠRZ IURP RSHUDWLRQV		849	1 154	757	1 151	1 579
Investments in fnancial assets		-818	-789	-1 605	-810	-2 710
Sale of shares and other securities		22	48	59	60	1 589
&DVK ĠRZ IURP LQYHVWLQJ DFWLYLWLHV		-796	-741	-1 546	-750	-1 121
Repayment of loan		-1 200	-	-500	0	0
Borrowing		2 300	200	2 300	200	500
Dividend paid to equity holders of the Parent company		- 1 169	-2 270	-1 169	-2 270	-2 270
&DVK ĠRZ IURP ğQDQFLQJ DFWLYLWLHV		-69	-2 070	631	-2 070	-1 770
&DVK ĠRZ IRU WKH SHULRG		-16	-1 657	-158	-1 669	-1 312
&DVK DQG VKRUW WHUP LQYHVWPHQWV RSHQLQJ EDODQFH		344	1 786	486	1 798	1 798
&DVK DQG VKRUW WHUP LQYHVWPHQWV FORVLQJ EDODQFH		328	129	328	129	486
SUPPLEMENTARY CASH FLOW INFORMATION
Investments in fnancial assets	4	-1 367	-789	-2 415	-810	-2 731
Investments not paid		630	-	830	-	21
Prior period investments, paid in current period		-81	-	-20	-
&DVK ĠRZ IURP LQYHVWPHQWV LQ ğQDQFLDO DVVHWV		-818	-789	-1 605	-810	-2 710

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SEK m	Note	2019 30 Jun	2018 30 Jun	2018 1 'HF
ASSETS
)L[HG DVVHWV
Financial assets accounted at fair value through proft and loss	4	94 720	99 181	73 430
Tangible fxed assets		52	55	54
Right of use asset		15		-
Other fxed assets		22	2	24
7RWDO ğ[HG DVVHWV		94 809	99 238	73 508
Other current assets		37	195	54
Short term investments		0	-	149
Cash and cash equivalents		328	129	337
TOTAL ASSETS		95 174	99 562	74 048
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity attributable to equityholders of the Parent Company		89 049	96 409	70 503
Interest bearing liabilities, long term		2 904	2 875	2 871
Interest bearing liabilities, short term		2 300	200	500
Non interest bearing liabilities		921	78	174
TOTAL EQUITY AND LIABILITIES		95 174	99 562	74 048

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Ratio	Note	2019 30 Jun	2018 30 Jun	2018 1 'HF
Debt/equity ratio		0.06	0.03	0.05
Equity ratio		94%	97%	95%
Net debt ,for the Group, including net loans to investee companies	6	-5 162	-2 751	-2 769
Leverage		5%	3%	4%

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SEK m	2019 1 Jan 30 Jun	2018 1 Jan 30 Jun	2018 Full year
2SHQLQJ EDODQFH	70 503	90 633	90 633
Proft for the period	19 703	8 037	-13 656
7RWDO FRPSUHKHQVLYH LQFRPH IRU WKH SHULRG	19 703	8 037	-13 656
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New issue	-	-	1
Effect of employee share saving programme	12	9	22
Dividend in kind	-	-	-4 227
Cash dividend	-1 169	-2 270	-2 270
&ORVLQJ EDODQFH IRU WKH SHULRG	89 049	96 409	70 503

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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 and South East Asia.

For a more detailed description of Kinnevik's risks and uncertainties, as well as risk management, refer to Note 17 for the Group in the 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 on 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. 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 30 June 2019:

Company	Summary
Global Fashion Group	ƒ Final offer price per share in the IPO completed on 2 July 2019 ƒ Equity value of EUR 885m, assuming full exercise of underwriters' greenshoe option
Kolonial	ƒ Trailing and forward-looking revenue multiples of a peer group of inventory-holding e-commerce retailers, correspond ing to the valuation in a secondary transaction during the second quarter of 2019 ƒ Equity value of NOK 2.0bn
MatHem	ƒ Trailing and forward-looking revenue multiples of a peer group of inventory-holding e-commerce retailers, correspond ing to the valuation in a funding round during the frst quarter of 2019 ƒ Equity value of SEK 2.35bn
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 Discounted cash fow analysis as well as forward-looking revenue multiples of a peer group of emerging market online classifeds companies ƒ Equity value of USD 969m
Saltside	ƒ Discounted cash fow analysis as well as forward-looking revenue multiples of a peer group of emerging market online classifeds companies
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 Trailing and forward-looking earnings and book value multiples of a peer group of consumer fnance companies ƒ Fully diluted as-converted equity value of USD 611m
Betterment	ƒ Discounted cash fow analysis ƒ Fully diluted equity value of USD 805m
Milvik/Bima	ƒ Discounted cash fow analysis ƒ Fully diluted equity value of approximately USD 300m
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, corresponding to the valuation in a funding round during the third quarter of 2018 ƒ Fully diluted equity value of EUR 394m
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 during the second quarter of 2019
Babylon	ƒ Forward-looking revenue multiples of a peer group of disruptive healthcare and healthcare IT companies
Livongo	ƒ Forward-looking revenue multiples of a peer group of disruptive healthcare, healthcare IT and software-as-a-service companies, corresponding to the low-end of the IPO price range
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	2019 1 Apr 30 Jun	2018 1 Apr 30 Jun	2019 1 Jan 30 Jun	2018 1 Jan 30 Jun	2018 Full year
Com Hem	-	332	-	695	600
Home24	-74	666	-253	666	53
Millicom	-1 645	-1 796	-1 457	-1 058	228
MTG	-	494	-	399	-419
Qliro Group	75	49	107	-198	-375
SDS	-	-2	-	-4	-3
Tele2	2 176	811	4 268	671	2 181
Westwing	-207	-	-317	-	-269
Zalando	3 918	3 427	14 410	5 068	-16 173
7RWDO /LVWHG KROGLQJV	4 243	3 980	16 758	6 239	-14 178
Babylon	612	3	647	25	3
Bayport	8	75	62	100	90
Betterment	7	74	60	99	89
Bread	-	-	14	-	-9
Budbee	-	-	98	-	-
Cedar	-	2	6	2	1
Deposit Solutions	4	-	12	-	11
Global Fashion Group	-940	-253	-155	-192	-1 955
Home24	-	-	-	81	81
Kolonial	34	-	50	-	-19
Livongo	1 033	36	1 065	134	139
MatHem	-	-	-	-	-
Milvik/Bima	-	56	41	75	67
Monese	-7	1	7	1	5
Omio	-	-	21	-	-
Pleo	191	1	193	1	-1
Quikr	-209	149	-101	217	285
Travelperk	208	-	213	-	-4
Westwing	-	25	-	29	271
Other*	-48	45	-56	-55	-59
7RWDO 8QOLVWHG KROGLQJV	892	214	2 179	517	-1 005
Total	5 135	4 195	18 937	6 755	-15 184

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

NOTES FOR THE GROUP

		30 June 2019
%RRN YDOXH RI ğQDQFLDO DVVHWV	&ODVV \$ VKDUHV	&ODVV % VKDUHV	&DSLWDO 9RWHV	2019 30 Jun	2018 30 Jun	2018 1 'HF
Com Hem	-	-	-	-	4 921	-
Home24	3 111 953	-	11.9/11.9	99	965	352
Millicom	37 835 438	-	37.4/37.4	19 712	19 883	21 169
MTG	-	-	-	-	5 045	-
Qliro Group	42 613 642	-	28.5/28.5	498	568	391
SDS	-	-	-	-	4	-
Tele2	20 733 965	166 879 154	27.3/42.0	25 440	16 021	21 172
Westwing	2 797 139	-	13.5/13.5	165	-	482
Zalando	78 427 800	-	31.7/31.7	32 335	39 165	17 924
7RWDO /LVWHG +ROGLQJV				78 249	86 572	61 490
Babylon			20/20	1 225	518	500
Bayport			22/22	1 234	1 182	1 172
Betterment			16/16	1 213	1 163	1 153
Bread			13/13	312	-	298
Budbee			24/24	224	80	80
Cedar			10/10	195	143	142
Deposit Solutions			7/7	286	-	274
Global Fashion Group			40/40	3 761	5 047	3 284
Kolonial			24/24	695	-	309
Livongo			9/9	1 765	584	700
MatHem			38/38	889	-	-
Milvik/Bima			36/36	987	881	873
Monese			16/16	365	-	202
Omio			6/6	464	-	443
Pleo			13/13	345	68	67
Quikr			17/17	1 542	1 575	1 643
Saltside			61/61	201	199	199
Travelperk			15/15	460	-	223
Westwing			-	-	508	-
Other*			-	308	661	377
7RWDO 8QOLVWHG +ROGLQJV				16 471	12 609	11 939

Total 94 720 99 181 73 430

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

,QYHVWPHQWV LQ ğQDQFLDO DVVHWV	2019 1 Apr 30 Jun	2018 1 Apr 30 Jun	2019 1 Jan 30 Jun	2018 1 Jan 30 Jun	2018 Full year
Babylon	76	118	78	118	122
Milvik/Bima	-	-	73	-	-
Bread	-	-	-	-	307
Budbee	-	80	46	80	80
Cedar	47	141	47	141	141
Deposit Solutions	-	-	-	-	263
Global Fashion Group	632	-	632	-	-
Kolonial	336	-	336	-	328
Livongo	-	345	-	345	456
MatHem	-	-	889	-	-
Monese	156	23	156	23	197
Omio	-	-	-	-	443
Pleo	85	67	85	67	68
Travelperk	-	-	24	-	227
Other	34	15	48	36	99
7RWDO 8QOLVWHG +ROGLQJV	1 367	789	2 415	810	2 731
Total	1 367	789	2 415	810	2 731

&KDQJHV LQ XQOLVWHG DVVHWV OHYHO	2019 1 Apr 30 Jun	2018 1 Apr 30 Jun	2019 1 Jan 30 Jun	2018 1 Jan 30 Jun	2018 Full year
Opening balance	14 234	11 994	11 939	11 682	11 682
Investments	1 367	789	2 415	810	2 731
Disposals / Exit proceeds	- 22	- 89	- 59	- 101	- 419
Reclassifcation	-	- 299	-	- 299	-1 050
Change in fair value	892	214	2 179	517	-1 005
&ORVLQJ EDODQFH	16 471	12 609	16 471	12 609	11 939

NOTE 5 DIVIDENDS RECEIVED

	2019 1 Apr 30 Jun	2018 1 Apr 30 Jun	2019 1 Jan 30 Jun	2018 1 Jan 30 Jun	2018 Full year
Millicom	476	441	476	441	890
Tele2	413	610	413	610	610
MTG	-	169	-	169	169
Com Hem	-	-	-	-	203
Other	-	-	-	-	15
7RWDO GLYLGHQGV UHFHLYHG	889	1 220	889	1 220	1 887
Of which cash dividends	889	1 842	889	1 842	1 887
Of which ordinary cash dividends	889	1 842	889	1 842	1 872

NOTE 6 INTEREST BEARING ASSETS AND LIABILITIES

Kinnevik's total interest bearing assets amounted to SEK 867m as at 30 June 2019. The total amount of interest bearing liabilities was SEK 5,199m and debt for unpaid investments was SEK 830m. Kinnevik was in a net debt position of SEK 5,162m as at 30 June 2019, including loans to investee companies and debt for unpaid investments (net debt SEK 2,769m as at 31 December 2018). Net debt excluding loans to portfolio companies amounted to SEK 5,679m.

Kinnevik's total credit facilities (including issued bonds) amounted to SEK 8,980m as at 30 June 2019 whereof SEK 6,000m related to unutilised revolving credit facilities and SEK 2,850m related to bonds.

The Group's available liquidity, including short term investments and available unutilized credit facilities, totalled SEK 4,158m as at 30 June 2019 (SEK 6,116m as at 31 December 2018).

SEKm	2019 30 Jun	2018 30 Jun	2018 1 'HF
,QWHUHVW EHDULQJ DVVHWV
Loans to investee companies	517	151	118
Short term investments	-	-	149
Cash and cash equivalents	328	129	337
Other interest bearing assets	22	3	19
7RWDO LQWHUHVW EHDULQJ DVVHWV	867	283	623
,QWHUHVW EHDULQJ ORQJ WHUP OLDELOLWLHV
Corporate bonds	2 850	2 850	2 850
Accrued borrowing cost	-11	-16	-13
Other interest bearing liabilities	60	41	34
	2 899	2 875	2 871
,QWHUHVW EHDULQJ VKRUW WHUP OLDELOLWLHV
Commercial papers	2 300	200	500
	2 300	200	500
7RWDO LQWHUHVW EHDULQJ OLDELOLWLHV	5 199	3 075	3 371
Net interest bearing liabilities (-) / assets (+)	-4 332	-2 792	-2 748
Receivable/debt, unpaid investments/divestments	-830	41	-21
1HW FDVK1HW GHEW IRU WKH *URXS LQFOXGLQJ QHW ORDQV WR LQYHVWHH FRPSDQLHV	-5 162	-2 751	-2 769

The outstanding loans carry an interest rate of Stibor or similar base rate with an average margin of 0.5%. All bank loans have variable interest rates (up to 3 months) while fnancing from the capital markets vary between 1 to 12 months for the loans under the commercial paper program and 5 years fxed for the outstanding bond (as per date of issue).

As at 30 June 2019, the average remaining tenor was 2.5 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	2019 1 Apr 30 Jun	2018 1 Apr 30 Jun	2019 1 Jan 30 Jun	2018 1 Jan 30 Jun	2018 Full year
Administration costs	-69	-54	-119	-121	-316
Other operating income and costs	2	-1	2	2	5
2SHUDWLQJ ORVV	-67	-55	-117	-119	-311
Dividends received, external	-	690	-	705	2 984
Result from associated companies	0	35	0	23	6 684
Result from subsidiaries	7 082	2 214	7 067	2 183	-2 290
Financial net	-21	-11	-30	-22	-43
3URğWORVV DIWHU ğQDQFLDO LWHPV	6 994	2 873	6 920	2 770	7 024
Group contribution	-	-	-	-	-7
3URğWORVV EHIRUH WD[HV	6 994	2 873	6 920	2 770	7 017
Taxes	-	-	-	-	0
1HW SURğWORVV IRU WKH SHULRG	6 994	2 873	6 920	2 770	7 017
7RWDO FRPSUHKHQVLYH LQFRPH IRU WKH SHULRG	6 994	2 873	6 920	2 770	7 017

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SEK m	2019 30 Jun	2018 30 Jun	2018 1 'HF
ASSETS
Tangible fxed assets	5	3	4
Financial fxed assets	67 253	53 945	62 912
Long term receivables	22	0	20
Short term receivables	116	14	38
Short term investments	-	-	149
Cash and cash equivalents	200	116	202
TOTAL ASSETS	67 596	54 078	63 325
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity	56 917	49 334	51 155
Provisions	26	26	26
Long term interest bearing liabilities	4 226	4 458	2 842
Short term interest bearing liabilities	2 300	200	500
Other short term liabilities	4 127	60	8 802
TOTAL SHAREHOLDERS' EQUITY AND LIABLITIES	67 596	54 078	63 325

The Parent Company's liquidity, including short-term investments and unutilized credit facilities, totalled SEK 4,030m (6,046) at 30 June 2019. The Parent Company's interest bearing external liabilities amounted to SEK 5,177m (3,035) on the same date. Investments in tangible fxed assets amounted to SEK 1m (0) during the period.

Distribution by class of shares on 30 June 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	3 375
Outstanding Class B shares, 1 vote each	241 374 737	241 374 737	24 137
Outstanding Class D-G shares, 1 vote each	587 281	587 281	59
Class B shares in own custody	536 469	536 469	54
5HJLVWHUHG QXPEHU RI VKDUHV	276 253 919	580 052 807	27 625

The total number of votes for outstanding shares amounted at 30 June 2019 to 579,516,338 excluding 536,469 class B treasury shares.

The Board has authorization to repurchase up to a maximum of 10% of all shares in the Company over 12 months, ending at the AGM of 2020. 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

The Board of Directors and the Chief Executive Offcer certify that this undersigned six month interim report provides a true and fair overview of the Parent Company and Group's operations, fnancial position and performance for the period, and describes the material risks and uncertainties facing the Parent Company and other companies in the Group.

Stockholm, 19 July 2019

Dame Amelia Fawcett Chairman of the Board

Henrik Poulsen Deputy Chairman of the Board

Wilhelm Klingspor Member of the Board

Brian McBride Member of the Board Charlotte Strömberg

Member of the Board

Susanna Campbell Member of the Board

Georgi Ganev Chief Executive Offcer

AUDIT REPORT

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We have reviewed the interim report for Kinnevik AB (publ) for the period January 1 - June 30, 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.

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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, July 19, 2019 Deloitte AB

Jan Berntsson Authorized Public Accountant

FINANCIAL REPORTS

Dates for 2019 reporting: 24 October Interim Report January-September 2019 February 2020 Year-End Release 2019

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 19 July 2019.

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

Torun Litzén, Director Corporate Communications Phone +46 (0)70 762 00 50 Email: press@kinnevik.com

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