Kinnevik

Quarterly Report • Feb 14, 2019

YEAR-END RELEASE 2018

"My frst year as CEO of Kinnevik has been a year of continued transformation where we have executed on a strategically important merger and made ten new investments in our focus areas"

Georgi Ganev, CEO of Kinnevik

KEY PORTFOLIO DEVELOPMENTS

• Tele2 has continued to execute on its strategy by completing transformational mergers in Sweden and the Netherlands, as well as exercising the put option relating to the joint venture in Kazakhstan
• On 9 January 2019, Millicom completed the listing of the company's shares on the Nasdaq Stock Market in New York, allowing the company to reach a broader investor base as well as improving the liquidity of the stock

INVESTMENT MANAGEMENT ACTIVITIES

• Total investments of SEK 392m in the fourth quarter, whereof SEK 227m in Travelperk, an end-to-end platform allowing businesses to effciently manage corporate travel, SEK 111m in Livongo, and SEK 54m in other existing assets
• In relation to the Tele2 / Com Hem merger, Kinnevik received SEK 1.2bn in cash and SEK 3.6bn in Tele2 shares in exchange for its shares in Com Hem
• On 14 February 2019 Kinnevik announced that it has committed to invest SEK 0.9bn into MatHem, Sweden's leading independent online grocery retailer, resulting in a 38% ownership stake for Kinnevik

FINANCIAL POSITION

• Net asset value of SEK 70.5bn (SEK 256 per share), down SEK 8.2bn or 10% during the quarter, driven by negative share price development in Zalando and other e-commerce assets, partially offset by Tele2 and Millicom
• Net debt position decreased by SEK 1.2bn to SEK 2.9bn, as a consequence of the Tele2 / Com Hem merger as well as Kinnevik receiving the second tranche of Millicom's annual dividend during the quarter, resulting in leverage of 4% of Portfolio Value by the end of the year

2018 DIVIDEND RECOMMENDATION

• Kinnevik's Board of Directors recommends an ordinary dividend of SEK 8.25 per share for 2018 equivalent to a dividend yield of 3.9%. The Annual General Meeting will be held on 6 May 2019

SEKm	31 Dec 2018	30 Sep 2018	31 Dec 2017
Net Asset Value	70 503	78 775	90 633
Net Asset Value per share, SEK	255.71	286.33	329.44
Share Price, SEK	213.00	269.70	276.40
Net Cash / (Net Debt)	-2 887	-4 106	-1 062

SEKm	Q4 2018	Q4 2017	FY 2018	FY 2017
Net Proft/Loss	-8 280	4 960	-13 656	20 359
Net Proft/Loss per Share, SEK	-30.04	18.00	-49.58	73.90
Change in Fair Value of Financial Assets	-8 590	5 055	-15 184	18 395
Dividends Received	449	-	1 887	2 260
Dividend Paid	-	-	-6 497	-2 201
Investments	392	116	2 731	4 774
Divestments	1 197	3	1 610	5 280

Chief Executive's Review

Dear Shareholders,

0\ ğUVW \HDU DV &(2 RI .LQQHYLN KDV EHHQ D \HDU RI FRQWLQXHG WUDQVIRUPDWLRQ IRU .LQQHYLN ZKHUH ZH H[HFXWHG on a strategically important merger and made ten new investments in our focus areas. In the second half of the year, against the backdrop of volatile equity markets with particularly weak performance in fashion e-commerce, ZH VDZ D VLJQLğFDQW GURS LQ WKH VKDUH SULFH RI =DODQGR LPSDFWLQJ RXU 1HW \$VVHW 9DOXH DQG 7RWDO 6KDUHKROGHU Return. This notwithstanding, we remain focused on creating value through active ownership and through making further investments in both new and existing companies.

OUR FOURTH QUARTER RESULTS

Kinnevik's NAV decreased by 10% to SEK 70.5bn, or SEK 256 per share, in the fourth quarter, driven mainly by the negative share price development in Zalando. Our TMT assets performed well during the year, with Millicom delivering on all fnancial targets and continuing its focus on its Latin American markets. Tele2 had a busy year and in the fourth quarter alone closed or announced three milestone transactions in Sweden, the Netherlands and Kazakhstan. Financially, the company delivered yet another solid quarter to end the busy year, and communicated increased synergy estimates relating to the merger with Com Hem.

The value of our private assets decreased to SEK 12.9bn, with the fair value of Global Fashion Group being negatively impacted by the de-rating of fashion e-commerce trading multiples. Operationally however, Global Fashion Group is developing positively and in line with its plan of healthy growth and continuous improvements towards proftability. We also see positive operational momentum in our other large private companies. Quikr, our Indian classifed's business, is showing strong revenue growth as their strategy of verticalization is paying off with annualized revenues growing by more than 80% and three out of fve categories being at or around break-even. Betterment, our U.S. roboadvisor business, grew its customer base by close to 30% and launched new smart savers products.

CAPTURING THE DIGITALISATION OF FOOD

The Nordic countries have long been hailed as leaders in innovation, digital transformation and the adoption of new technologies. Yet in some sectors, the Nordic countries are lagging behind the true innovators. Food is one such sector. We believe this will change, and that the food sector is on the brink of a period of transformation over the next ten years far more forceful than the changes the sector has experienced during the past hundred years. The strongest underlying trend is that of a shift from offine to online, and with our deep understanding of e-commerce and of the digital consumer, we want to be driving this shift.

The way we grow, package, ship and eat food has changed dramatically and will continue to change at an accelerating pace. Innovation and awareness of what we eat and how that affects our health is increasing, and food is correspondingly becoming an integrated part of one's identity, beliefs and desires, as well as a tool for managing wellness. Innovative business models have the power to contribute to us limiting the burden on our planet by reducing waste and optimizing transportation. We strongly believe in delivering both economic and social value, and correspondingly we fnd that food fts squarely with our investment thesis.

Today, we announce our investment in MatHem, Sweden's leading independent pure-play online grocery retailer. The company covers more than half of Swedish households and had a turnover of approximately SEK 1.5bn in 2018 while completing over one million deliveries, highlighting the strategic value of a platform with regular and recurring services delivered to people's homes. Using this strategic position as a starting point, the ambition is to deepen the relationship with customers, extending it beyond the scope of the online grocer itself.

BALANCE SHEET AND SHAREHOLDER REMUNERATION

We end the year with a net debt position of SEK 2.9bn corresponding to a leverage of 4% of portfolio value, well within our leverage target. The Board proposes a dividend of SEK 8.25 to be paid out in two tranches, in May and in November, on the back of Millicom and Tele2 both having proposed to split their dividend payments in a similar fashion.

CONCLUDING REMARKS

When I set my priorities a year ago, my focus was on active ownership, increased activity in the private portfolio and an increased engagement in the Nordics. In 2019, we will continue to drive this agenda, but I expect the number of new investments during 2019 to be fewer in favor of more sizeable investments, as demonstrated by the investment in MatHem we announce today. We will also remain focused on accelerating the key companies in our private portfolio, and continuing to support and invest in them as they grow and require more capital. I would like to extend my thanks to you, our shareholders, for your continued support. We have an excellent set of growth companies in our portfolio and a long-term vision of value creation which we are committed to delivering on.

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 SEKm NAV, SEKbn Q4 2017 Q3 2018 Q4 2018 90.6 78.8 42.7 36.6 25.4 45.4 40.9 42.5 3.1 4.1 4.1 0.5 1.2 1.3 (4.1) (1.1) (2.9) 70.5

PORTFOLIO COMPOSITION PORTFOLIO RETURN RATES

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

% of Portfolio Value

Net Asset Value

SEKm	Fair Value 2018 31 Dec	Fair Value 2018 30 Sep	Fair Value 2017 31 Dec	Total Return 2018 1
Zalando	17 924	27 187	34 097	-47%
Global Fashion Group	3 284	4 568	5 239	-37%
Quikr	1 643	1 622	1 358	21%
Westwing	482	751	479	1%
Home24	352	730	218	61%
Qliro Group	391	542	767	-49%
Other 2	1 366	1 179	516	2%
Total E-Commerce & Marketplaces	25 442	36 579	42 674	-42%
Millicom	21 169	19 391	20 942	5%
Tele2	21 172	16 295	15 350	15%
Com Hem	-	4 999	4 226	21%
MTG	-	-	4 645	9%
Other	164	200	277	-34%
Total TMT	42 505	40 885	45 440	11%
Bayport	1 172	1 175	1 082	8%
Betterment	1 153	1 156	1 064	8%
Bima	873	876	806	8%
Other 2	938	914	126	-1%
Total Financial Services	4 136	4 121	3 078	6%
Livongo	700	580	105	25%
Babylon	500	511	375	1%
Cedar	142	142	-	1%
Total Healthcare	1 342	1 233	480	12%
Other Total Portfolio Value	4 73 430	3 82 821	45 91 717	-14%
Net Cash / (Net Debt)	-2 887	-4 106	-1 062
Other Net Assets / (Liabilities)	-39	60	-22
Total Net Asset Value	70 503	78 775	90 633	-15%
Net Asset Value per Share, SEK	255.71	286.33	329.44	-15%
Closing Price, Class B Share, SEK	213.00	269.70	276.40	-16%
1 Includes investments and divestments.

² For split see page 11.

E-Commerce & Marketplaces

=DODQGR LV DQ RQOLQH IDVKLRQ SODWIRUP IRU ZRPHQ PHQ 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 Q3 2018 revenue growth of 12% and Adjusted EBIT margin of (3)%
• The fulflment network ramp-up continues with the Szczecin site successfully operating at capacity. The site will serve Zalando deliveries to customers from all 17 European markets
• Zalando continues to expand its offering, launching the beauty segment for men as well as expanding to new markets

Global Fashion Group (GFG) is an online fashion destination for growth markets. GFG operates with ğYH EUDQGHG SODWIRUPV /DPRGD 'DğWL =DORUD 7KH Iconic and Namshi, offering over 3,000 international and local brands across 24 countries with a 1.9 billion population.

• GFG reported Q3 2018 Net Merchandise Value growth of 23%, with growth particularly strong in Zalora and The Iconic. The EBITDA margin of (8)% represented a 5pp yearly improvement
• Lamoda furthered its partnership with Inditex, adding two new brands to the marketplace
• The Iconic launched its designated Kids category to further enhance relevance to its customer base and capture an additional growth opportunity

35% SEK 3.3BN

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

• Qliro reported negative revenue growth in Q4 2018 of 14% and EBITDA margin of 3.4%
• QFS grew its loan book with 45% to over SEK 1.5 billion, driven by the personal loan segment. Total operating income increased by 26%
• Nelly continues to focus on growth and grew the number of customers with 11% while average order value grew 10% during the quarter

KINNEVIK STAKE FAIR VALUE

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• Based on the second half of CY 2018, Quikr generated just under USD 50m in annualised cash revenue at a year on year growth rate of over 80%
• Three of the fve categories the company operates in continued to be at or around break-even proftability, driven by the fact that over 95% of traffc comes from unpaid sources and effcient channelling of the user base to cross-sell across categories and into transactional models

17% SEK 1.6BN

KINNEVIK STAKE FAIR VALUE

Go to company website > Go to company website >

E-Commerce & Marketplaces

Westwing is a home & living e-commerce brand and platform operating across Europe. Through its "shoppable magazine" Westwing inspires its customers with a curated product selection including textiles, furniture, rugs and lamps.

• Revenue growth of 15% in Q3 2018, driven by the DACH region's full Westwing model of daily themes, permanent assortment and private label
• Adjusted EBITDA margin up from (4.9)% to (2.9)% year on year, driven by attractive private label portfolio and strong growth within the relatively more proftable DACH segment
• Own label and private label comprise 5,000 products with a growing share of revenue, currently 18% of GMV

Home24 is an online shop for furniture and home accessories in seven core markets in Europe and Brazil. The broad range of products includes furniture, lamps, home accessories and garden equipment.

• Home24 published their Trading Update with preliminary and unaudited fnancials on 13 February, reporting Q4 2018 revenue growth of 15% and FX-adjusted revenue growth of 19%
• The Adjusted EBITDA margin decreased to (13)% for the full year, refecting the weaker than anticipated demand experienced earlier in the year as well as key investments ramping up
• The company reconfrmed its forecast for 2019 with revenue growth at or above the level of 2018 and adjusted EBITDA being break even by year end

Go to company website > Go to company website >

13% KINNEVIK STAKE

12% SEK 352M

GoEuro 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 Q4 2018, Onsite Booking Volumes grew over 140% year on year. These represent the value of transactions completed on GoEuro's own website and app, rather than off-site bookings that redirect to partner websites for a consumer to complete a transaction
• Onsite bookings now account for the majority of all transactions, marking a fundamental transition of the business that allows it to provide a superior end-to-end user experience

Go to company website >

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 Q4 2018 organic service revenue growth of 3.7% and an EBITDA margin of 38% in the Latam segment
• The acquisition of Cable Onda was fnalised during the fourth quarter, and on 9 January 2019 the company completed the secondary listing of the its shares on the Nasdaq Stock Exchange in New York
• The company also announced its medium term growth plan for the Latam segment
• Proposed dividend of USD 2.64 per share

7HOH2 RIIHUV PRELOH VHUYLFHV ğ[HG EURDGEDQG DQG telephony, data network services, content services and global IoT solutions to 17 million customers in 8 countries across Europe.

• Tele2 reported Q4 2018 organic revenue growth of 3% and an EBITDA margin of 28%
• Both Tele2 and Com Hem delivered on their respective full-year guidance for 2018, and Tele2 announced that synergy estimates are raised from SEK 900m to SEK 1,350m to be realized within three years, instead of fve as previously indicated
• Proposed dividend of SEK 4.40 per share, with additional shareholder remuneration after the closing of the divestments of the operations in Kazakhstan and the Netherlands

Go to company website > Go to company website >

FAIR VALUE

27% SEK 21.2BN KINNEVIK STAKE

KINNEVIK AB (Publ) Reg no 556047-9742 • Phone +46 8 562 000 00 • www.kinnevik.com

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 14.3bn at the end of December 2018, an increase of 15% year on year. Number of customers totalled over 398,000, an annual increase of 26%
• During the quarter the company launched Cash Analysis which examines the expenses in checking accounts on a daily basis to project optimal balance ranges
• "Betterment for Advisors" launched a new advisor dashboard to help their advisors better manage clients' accounts

Go to company website >

%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.

• As per Q4 2018, Bayport's customer base exceeded 495,000, representing Y/Y growth of c. 12%
• New products, such as voluntary standalone Personal Accident in Colombia or Mopani Mine funeral insurance in Zambia, continue to show strong traction
• The company strengthened its management team with a newly appointed Group Deputy CFO, as well as new hires in Ghana, Tanzania, Mexico, and Mozambique

Go to company website >

22% SEK 1.2BN

Milvik offers, under the brand BIMA, affordable and uniquely designed life and health insurance products via mobile phones. BIMA is active in 14 countries across Africa, Asia, Latin America and the Caribbean.

• At the end of December 2018, BIMA had 7.2 million active customers, representing a yearly increase of 31% excluding discontinued products and markets
• In Q4 2018, BIMA launched BIMA Sehat, a health and teledoctor service in Pakistan, building on its existing insurance product offering in the market

Go to company website > 33% SEK 873M KINNEVIK STAKE FAIR VALUE

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, continued its growth to over 41,000 registered members
• Babylon has surpassed 3 million direct members spanning the UK, Rwanda and other international markets, and tens of millions more can access its services via partnerships such as with Prudential
• The company announced it's making a USD 100 million investment to double the size of its technology team and develop the next generation of AI-powered healthcare services

20% SEK 500M

Go to company website >

KINNEVIK STAKE FAIR VALUE

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's member base grew to over 100,000 members after another record-setting year expanding the client base to more than 600 clients. The management team has been strengthened to become one of the most accomplished in digital health globally
• The company announced Applied Health Signals to better describe its category of companies that aggregate, interpret, apply and iterate health data to improve health outcomes
• Livongo acquired myStrength, a leading US based behavioural health company, to address the health of the whole person both in physical and mental wellbeing

Go to company website >

Financial review

INVESTMENT ACTIVITY

Investee Company (SEKm)	Q4 2018	FY 2018
Livongo	111	456
GoEuro	-	443
Kolonial	-	328
Bread	-	307
Deposit Solutions	50	263
Travelperk	227	227
Monese	-	197
Cedar	-	141
Babylon	2	122
Budbee	-	80
Pleo	1	68
Karma	-	62
Other	1	37
Investments	392	2 731
ComHem1	1 187	1 187
Linio	-	273
Other	10	150
Divestments	1 197	1 610
Net Investments / (Divestments)	-805	1 121

¹ In the Tele2 / Com Hem merger, Kinnevik received SEK 1.2bn in cash and SEK 3.6bn in Tele2 shares in exchange for its shares in Com Hem

DIVIDEND AND CAPITAL STRUCTURE

As of 31 December 2018, Kinnevik carried net debt of SEK 2.9bn, corresponding to a leverage of 4% of portfolio value.

During 2018, Kinnevik has received ordinary dividends of SEK 1.9bn from Tele2, MTG, Com Hem and Millicom.

In May, Kinnevik paid out an ordinary dividend of SEK 2.3bn and in August, Kinnevik distributed its shares in MTG, with a corresponding value of SEK 4.2bn.

For the fnancial year 2018, the Board of Directors of Millicom and Tele2 have recommended the following dividends:

Kinnevik's part of dividend recommended to be paid from listed investee companies	Amount (SEKm)
Millicom	USD 2.64 per share	9261
Tele2	SEK 4.40 per share	825
Total ordinary dividends		1 751
Recommended cash distribution to Kinnevik's shareholders		Amount (SEKm)
Ordinary dividend	SEK 8.25 per share	2 272

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).

EVENTS AFTER THE REPORTING PERIOD

On 14 February 2019 Kinnevik announced that it has committed to invest SEK 0.9bn into MatHem, Sweden's leading independent online grocery retailer, resulting in a 38% ownership stake

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 31 Dec 2018	Oct-Dec 2018	Jan-Dec 2018	Valuation Method
Global Fashion Group 1,2	35%	5 658	3 284	-1 284	-1 955	Revenue multiple
Kolonial	15%	328	309	-20	-19	Latest transaction
Quikr	17%	879	1 643	21	285	DCF
Saltside	61%	195	199	-	4	DCF
GoEuro	-	443	443	-2	-	Latest transaction
Travelperk	13%	227	223	-4	-4	Latest transaction
Other 1	Mixed	194	192	-13	399	Mixed
Total E-Commerce & Marketplaces		7 924	6 293	-1 302	-1 290
Total TMT	Mixed	1 096	164	-36	-137	Mixed
Bayport 3,4	22%	467	1 172	-3	90	Latest transaction
Betterment 4	16%	1 065	1 153	-3	89	Latest transaction
Milvik/BIMA	33%	257	873	-3	67	Latest transaction
Bread	-	307	298	-1	-9	Latest transaction
Deposit Solutions	7%	263	274	-4	11	Latest transaction
Monese	-	197	202	-6	5	Latest transaction
Other	Mixed	155	164	-7	-6	Mixed
Total Financial Services		2 711	4 136	-27	247
Babylon	20%	430	500	-13	3	Latest transaction
Livongo	10%	569	700	9	139	Latest transaction
Cedar	8%	141	142	-	1	Latest transaction
Total Healthcare		1 140	1 342	-4	143
Other	Mixed	-	4	1	47	Mixed
Total Unlisted Financial Assets		12 871	11 939	-1 368	-990

¹ Net invested amounts include SEK 1.0bn in share distributions received from Rocket Internet.

² Ownership not adjusted for employee stock option plans and employee equity at subsidiary level.

³ Ownership on a fully diluted as converted basis.

⁴ Supported by complementary valuation methods.

FAIR VALUES AS AT 31 DECEMBER 2018

At the end of December, the fair value of Kinnevik's unlisted fnancial assets amounted to a total of SEK 11,939m, to be compared with an accumulated invested amount (net after dividends received) of SEK 12,871m. The change in fair value, plus dividends received, amounted to negative SEK 1,368m in the quarter, as specifed in the table on the previous page.

LIQUIDATION PREFERENCES

Kinnevik's unlisted investee companies adopt different fnancing structures, and may at times issue shares with liquidation preference rights. Liquidation preferences determine how proceeds from a liquidity event are allocated between shareholders. This allocation may become increasingly complex as a company raises several funding rounds at different valuations. As Kinnevik's participation often varies between funding rounds, Kinnevik's share of proceeds may signifcantly deviate from its percentage ownership of the investee company's issued equity. Accordingly, an increase or decrease in value of an investee company's equity where liquidation preferences are applicable may result in a disproportionate increase or decrease in the fair value of Kinnevik's shareholding in that investee company. An unlisted investee company's transition into a publicly listed company may also affect the value of Kinnevik's shareholding due to the dismantling of such provisions.

GLOBAL FASHION GROUP

The fair value of Kinnevik's 35 percent shareholding in Global Fashion Group ("GFG") amounts to SEK 3,284m, based on a total value of GFG's fully diluted equity of EUR 0.7bn. The valuation of GFG implies an average multiple of 0.5x the company's last twelve months' net revenues as at 30 September 2018. The implied average multiple corresponds to a 40 percent discount to a group of listed and proftable developed market fashion e-commerce peers (compared to 47 percent as at 30 September 2018), and discounts vary between GFG's different regional businesses. The implied discount not only refects differences in historic growth and proftability, but also Kinnevik's assessment of equity risk premiums across GFG's partly emerging market focused footprint.

OTHER E-COMMERCE

The fair value of Kinnevik's 15 percent shareholding in Kolonial amounts to SEK 309m, based on a total value of Kolonial's equity of NOK 2.0bn. The valuation is based on a funding round and secondary transaction during the third quarter of 2018.

MARKETPLACES

The fair value of Kinnevik's 17 percent shareholding in Quikr amounts to SEK 1,643m, based on a total value of Quikr's fully diluted equity of USD 1,081m. The valuation of Quikr is based on a discounted cash fow analysis. A number of allstock transactions have been concluded at an approximate 49 percent premium to the USD 1,081m valuation, but due to the lack of a signifcant cash element in each of these transactions they are not considered as suffciently robust to be used as basis for the assessment of the fair value of Kinnevik's shareholding.

The fair value of Kinnevik's 61 percent shareholding in Saltside amounts to SEK 199m. The valuation of Saltside is based on a discounted cash fow analysis.

The fair value of Kinnevik's shareholding in GoEuro amounts to SEK 443m and is based on a funding round during the third quarter of 2018.

The fair value of Kinnevik's 13 percent shareholding in Travelperk amounts to SEK 223m and is based on a funding round during the fourth quarter of 2018.

FINANCIAL SERVICES

The fair value of Kinnevik's 22 percent shareholding in Bayport amounts to SEK 1,172m, based on a total value of Bayport's fully diluted equity of USD 608m. The valuation of Bayport is based on a funding round during the third quarter of 2017, and is supported by price-to-earnings and price-tobook multiples of a group of listed fnancial services peers.

The fair value of Kinnevik's 16 percent shareholding in Betterment amounts to SEK 1,153m, based on a total value of Betterment's fully diluted equity of USD 800m. The valuation of Betterment is based on a funding round during the third quarter of 2017, and is supported by a discounted cash fow analysis.

The fair value of Kinnevik's 33 percent shareholding in Bima amounts to SEK 873m, based on a total value of Bima's fully diluted equity of approximately USD 290m. The valuation is based on a funding round in the fourth quarter of 2017.

The fair value of Kinnevik's shareholding in Bread amounts to SEK 298m and is based on a funding round during the third quarter of 2018.

The fair value of Kinnevik's 7 percent shareholding in Deposit Solutions amounts to SEK 274m, based on a total value of Deposit Solution's equity of approximately EUR 400m. The valuation is based on a funding round during the third quarter of 2018.

The fair value of Kinnevik's shareholding in Monese amounts to SEK 202m and is based on a funding round during the third quarter of 2018.

HEALTHCARE

The fair value of Kinnevik's 20 percent shareholding and other interest in Babylon amounts to SEK 500m, and is based on a funding round during the second quarter of 2017.

The fair value of Kinnevik's 10 percent shareholding in Livongo amounts to SEK 700m, and is based on a funding round during the second quarter of 2018.

The fair value of Kinnevik's 8 percent shareholding in Cedar amounts to SEK 142m, and is based on a funding round during the second quarter of 2018.

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SEK m	Note	2018 1 Oct 31 Dec	2017 1 Oct 31 Dec	2018 Full year	2017 Full year
Change in fair value of fnancial assets	4	-8 590	5 055	-15 184	18 395
Dividends received	5	449	0	1 887	2 260
Administration costs		-150	-96	-339	-245
Other operating income		16	28	32	41
Other operating expenses		0	0	-5	0
2SHUDWLQJ SURğWORVV		-8 275	4 987	-13 609	20 451
Financial net		-4	-25	-46	-90
3URğWORVV DIWHU ğQDQFLDO QHW		-8 279	4 962	-13 655	20 361
Tax		-1	-2	-1	-2
1HW SURğWORVV IRU WKH SHULRG		-8 280	4 960	-13 656	20 359
Net proft/loss per share before dilution		-30.04	18.03	-49.58	74.00
Net proft/loss per share after dilution		-30.04	18.00	-49.58	73.90
2WKHU FRPSUHKHQVLYH LQFRPH
Cash fow hedging, gains/losses during the period		-	11	-	29
7RWDO RWKHU FRPSUHKHQVLYH LQFRPH IRU WKH SHULRG		-	11	-	29
7RWDO FRPSUHKHQVLYH LQFRPH IRU WKH SHULRG		-8 280	4 971	-13 656	20 388
Outstanding shares at the end of the period		275 717 450	275 115 735	275 717 450	275 115 735
Average number of shares before dilution		275 420 307	275 116 053	275 416 805	275 115 947
Average number of shares after dilution		275 810 041	275 514 428	275 818 034	275 492 517

CONSOLIDATED EARNINGS FOR THE FOURTH QUARTER

The change in fair value of fnancial assets and dividends received amounted to a loss of SEK 8,141m (proft of 5,055) for the fourth quarter of which a loss of SEK 6,773m (proft of 4,831) was related to listed holdings and a loss of SEK 1,368m (proft of 224) was related to unlisted holdings. See note 4 for further details.

CONSOLIDATED EARNINGS FOR THE YEAR

The change in fair value of fnancial assets including dividends received amounted to a loss of SEK 13,297m (proft of 20,655) for the year of which a loss of SEK 12,307m (proft of SEK 21,099m) was related to listed holdings and a loss of SEK 990m (loss of 444) was related to unlisted holdings. See note 4 and 5 for further details. The increase in administration costs is mainly explained by higher investment activities and the changes in the structure of the long-term incentive plan for 2018, resolved by the AGM, where the greater part of the cost for the subsidy for the preference shares are taken when the preference shares are received. Improved fnancial net is due to lower borrowing costs and exchange differences.

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SEK m	Note	2018 1 Oct 31 Dec	2017 1 Oct 31 Dec	2018 Full year	2017 Full year
Dividends received	5	449	-	1 887	2 260
Cash fow from operations		-54	-47	-268	-201
&DVK ĠRZ IURP RSHUDWLRQV EHIRUH LQWHUHVW QHW DQG LQFRPH WD[HV		395	-47	1 619	2 059
Interest, received		0	0	0	10
Interest, paid		0	-19	-48	-76
&DVK ĠRZ IURP RSHUDWLRQV		395	-66	1 571	1 993
Investments in fnancial assets		-371	-139	-2 710	-4 843
Sale of shares and other securities		1 195	3	1 589	5 304
&DVK ĠRZ IURP LQYHVWLQJ DFWLYLWLHV		824	-136	-1 121	461
Amortization		-1 500	-761	0	-1 611
Borrowing		508	-	508	2 833
Cash dividend paid		-	-	-2 270	-2 201
&DVK ĠRZ IURP ğQDQFLQJ DFWLYLWLHV		-992	-761	-1 762	-979
&DVK ĠRZ IRU WKH SHULRG		227	-963	-1 312	1 475
&DVK DQG VKRUWWHUP LQYHVWPHQWV RSHQLQJ EDODQFH		259	2 761	1 798	323
&DVK DQG VKRUWWHUP LQYHVWPHQWV FORVLQJ EDODQFH		486	1 798	486	1 798
SUPPLEMENTARY CASH FLOW INFORMATION
Investments in fnancial assets	4	-392	-116	-2 731	-4 774
Current period investments, not yet paid		21	-	21	-
Prior period investments, paid in current period		-	-23	-	-69
&DVK ĠRZ IURP LQYHVWPHQWV LQ ğQDQFLDO DVVHWV		-371	-139	-2 710	-4 843

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SEK m	Note	2018 31 Dec	2017 31 Dec
ASSETS
)L[HG DVVHWV
Financial assets accounted at fair value through proft and loss	4	73 430	91 717
Tangible fxed assets		54	58
Other fxed assets		24	3
7RWDO ğ[HG DVVHWV		73 508	91 778
Other current assets		54	46
Short-term investments		149	1 750
Cash and cash equivalents		337	48
TOTAL ASSETS		74 048	93 622
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity attributable to equityholders of the Parent Company		70 503	90 633
Interest bearing liabilities, long-term		2 871	2 863
Interest bearing liabilities, short-term		500	0
Non interest bearing liabilities		174	126
TOTAL EQUITY AND LIABILITIES		74 048	93 622

.H\ 5DWLRV

Ratio	Note	2018 31 Dec	2017 31 Dec
Debt/equity ratio		0.05	0.03
Equity ratio		95%	97%
Net debt for the Group, including net loans to investee companies	6	-2 769	-1 062
Leverage		4%	1%

&RQGHQVHG 5HSRUW RI &KDQJHV LQ (TXLW\ IRU WKH *URXS

SEK m	6KDUH capital	2WKHU FRQWULEXWHG capital	+HGJLQJ UHVHUYH	5HWDLQHG HDUQLQJV LQFOXGLQJ QHW UHVXOW IRU WKH \HDU	7RWDO VKDUH KROGHUVł HTXLW\
2SHQLQJ EDODQFH 1 -DQXDU\ 201	27	8 840	-29	63 596	72 434
Proft for the period				20 359	20 359
Other comprehensive income			29		29
7RWDO FRPSUHKHQVLYH LQFRPH IRU WKH SHULRG	0	0	29	20 359	20 388
7UDQVDFWLRQV ZLWK VKDUHKROGHUV
Effect of employee share saving programme				12	12
Cash dividend				-2 201	-2 201
&ORVLQJ EDODQFH 1 'HFHPEHU 201	27	8 840	-	81 766	90 633
Proft/Loss for the period				-13 656	-13 656
Other comprehensive income			-		0
7RWDO FRPSUHKHQVLYH LQFRPH IRU WKH \HDU	0	0	-	-13 656	-13 656
7UDQVDFWLRQV ZLWK VKDUHKROGHUV
New issue	1				1
Effect of employee share saving programme				22	22
Distribution in kind				-4 227	-4 227
Cash dividend				-2 270	-2 270
&ORVLQJ EDODQFH 1 'HFHPEHU 2018	28	8 840	-	61 635	70 503

NOTES FOR THE GROUP

1RWHV IRU WKH *URXS 6(.P

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 2018 Kinnevik will apply IFRS 9 Financial Instruments, which replaces IAS 39 Financial Instruments: Recognition and Measurement and introduce requirements for the classifcation and measurement, impairment, derecognition and requirements for general hedge accounting. Classifcation and measurement under IFRS 9 is based on the entity's business model for managing the fnancial asset and the characteristics of the contractual cash fows of the asset. The change does not cause any transition effects for Kinnevik.

The accounting principles and calculation methods applied in this report are, in all material aspects, the same as those described in the 2017 Annual Report.

Future IFRS amendments

The Group will adopt IFRS 16 Leases from January 1, 2019. The standard provides a single lease accounting model for lessees, which imply that mainly all leases shall be included in the statement of fnancial position. The right-of-use asset (the lease asset) and the liability are measured to the present value of the future lease payments payable. The right-of-use asset also includes any initial direct costs incurred in obtaining the lease contract. In the income statement depreciations of the right-of-use asset and interest expenses are recognised. The Group will recognise the right-of-use asset in the line item where equivalent assets would be recognised if they were owned. In subsequent periods the right-of-use asset is recognized at cost less depreciations and any impairment losses and adjusted for any remeasurement of the lease liability. The Group will recognise the lease liability included in interest-bearing loans. In the subsequent periods the liability will be recognized at amortised cost and deducted with lease payments made. The lease liability is remeasured whenever, inter alia, changes in lease period and lease payments occur.

The Group's leases consist mainly of a rental contract for the company's offce in UK. Since the contract could have been terminated but was prolonged during 2018 there will be no initial effect to adjust in the opening balance for 2019. The Group adopts the exemptions for short-term lease contracts (12 months or less) and lease contracts where underlying asset amounts to low value. Those will be recognised in the operating result in the same way as current operating lease contracts. The non-cancellable lease contracts for the Group amounted to SEK 15m, whereof SEK 0m are short-term lease contracts or lease contracts where the underlying asset is of lower value. The discount rate amounts to 1.8 percent. Per 1 January 2019, the lease liability is SEK 15m. The Group's preliminary assessment is therefore that the transition to IFRS 16 will have an effect on material fxed assets and interest-bearing loans of approximately SEK 15m per 1 January 2019.

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, Sub-Saharan Africa and South East Asia.

For a more detailed description of Kinnevik's risks and uncertainties, as well as risk management, refer to Note 17 for the Group in the 2017 Annual Report.

NOTE 3 RELATED PARTY TRANSACTIONS

Related party transactions for the period are of the same character as the transactions described in the 2017 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, whereby a collective assessment is made to establish the valuation method that is most suitable for each individual holding. Firstly, it is considered whether any recent transactions have been made at arm's length in the relevant company. For new share issues, consideration is taken to if the newly issued shares have preferential rights, such as liquidation preferences to the company's assets senior to earlier issued shares. For companies where no or few recent arm's length transactions have been carried out, a valuation is conducted either by applying relevant multiples to the company's historical sales or profts, or by discounting future expected cash fows. When performing a valuation based on multiples, consideration is given to differences in size, historic growth, proftability and geographic exposure.

The valuation process for Kinnevik's unlisted holdings is led by a valuation team independently from the respective holding's investment manager. Accuracy and reliability of fnancial information used in the valuations is ensured through continuous contacts with the management of each holding and regular reviews of their accounts. Information and opinions on applicable valuation methods are obtained periodically from investment managers and well-renowned investment banks and audit frms. The valuations are discussed with the CFO and CEO after which a proposal is discussed with the Audit Committee and the external auditors. After their scrutiny and potential adjustments, the valuations are approved and included in Kinnevik's accounts.

Below is a summary of the valuation methods applied in the accounts as per 31 December 2018:

Company	Summary
Global Fashion Group	ƒ Sum-of-the-parts applying varying multiples on each region's last twelve months' net revenues ƒ Peer group includes Zalando, Asos and Boozt ƒ Implied average multiple of 0.5x, corresponding to an aggregate discount of 40% ƒ Fully diluted equity value of EUR 0.7bn, liquidation preferences considered in valuing Kinnevik's shareholding
Kolonial	ƒ Latest transaction value from funding round during the third quarter of 2018 ƒ Equity value of NOK 2.0bn
Quikr	ƒ Discounted cash fow analysis ƒ Fully diluted equity value of USD 1,081m
Saltside	ƒ Discounted cash fow analysis
GoEuro	ƒ Latest transaction value from funding round during the third quarter of 2018
Travelperk	ƒ Latest transaction value from funding round during the fourth quarter of 2018
Bayport	ƒ Latest transaction value from funding round during the third quarter of 2017 ƒ Supported by a peer group's average price-to-earnings and price-to-book multiples ƒ Fully diluted as-converted equity value of USD 608m
Betterment	ƒ Latest transaction value from funding round during the third quarter of 2017 ƒ Supported by a discounted cashs fow analysis ƒ Fully diluted equity value of USD 800m
Milvik/BIMA	ƒ Latest transaction value from funding round during the fourth quarter of 2017 ƒ Fully diluted equity value of approximately USD 290m
Bread	ƒ Latest transaction value from funding round during the third quarter of 2018
Deposit Solutions	ƒ Latest transaction value from funding round during the third quarter of 2018 ƒ Fully diluted equity value of EUR 400m
Monese	ƒ Latest transaction value from funding round during the third quarter of 2018
Babylon	ƒ Latest transaction value from funding round during the second quarter of 2017
Livongo	ƒ Latest transaction value from funding round during the second quarter of 2018
Cedar	ƒ Latest transaction value from funding round during the second quarter of 2018

For Global Fashion Group, an increase in the multiple by 10% would have increased estimated fair value by SEK 171m. Similarly, a decrease in the multiple by 10% would have decreased estimated fair value by SEK 272m. Should Global Fashion Group have been valued using the same multiples and foreign exchange rates as at 30 September 2018, the fair value would have amounted to SEK 4,550m, SEK 1,266m higher than the assessed fair value as at 31 December 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.

This note includes information per class of fnancial instruments that are valued at fair value, distributed in the levels stated below: Level 1: Fair value established based on listed prices in an active market for the same instrument.

Level 3: Fair value established using valuation techniques, with signifcant input from data that is not observable in the market.

&KDQJH LQ IDLU YDOXH RI ğQDQFLDO DVVHWV	2018 1 Oct 31 Dec	2017 1 Oct 31 Dec	2018 Full year	2017 Full year
Black Earth Farming	-	-3	-	-309
Com Hem	-173	296	600	496
Home24	-378	-	53	-
Millicom	1 778	681	227	6 152
MTG	-	667	-419	995
Qliro Group	-151	-55	-375	401
Rocket Internet	-	-	-	81
Seamless	-	-	-	1
SDS	-1	-5	-3	-13
Tele2	1 236	1 143	2 181	4 184
Westwing	-269	-	-269	-
Zalando	-9 263	2 107	-16 173	6 851
7RWDO /LVWHG KROGLQJV	-7 222	4 831	-14 179	18 839
Babylon	-13	4	3	77
Bayport	-3	3	90	-119
Betterment	-3	3	89	-53
Bread	-1	-	-9	-
Cedar	-	-	1	-
Deposit Solutions	-4	-	11	-
Global Fashion Group	-1 284	256	-1 955	-402
GoEuro	-2	-	-	-
Home24	-	127	81	86
Kolonial	-20	-	-19	-
Lazada	-	-	-	261
Livongo	9	2	139	-8
Milvik/BIMA	-3	307	67	298
Monese	-6	-	5	-
Quikr	21	-140	285	-177
Travelperk	-4	-	-4	-
Westwing	-1	34	271	50
Other*	-54	-372	-60	-457
7RWDO 8QOLVWHG +ROGLQJV	-1 368	224	-1 005	-444
Total	-8 590	5 055	-15 184	18 395

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

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.

NOTES FOR THE GROUP

		1 'HFHPEHU 2018
%RRN YDOXH RI ğQDQFLDO DVVHWV	&ODVV \$ VKDUHV	&ODVV % VKDUHV	&DSLWDO 9RWHV	2018 30 Dec	2017 31 Dec
Com Hem	-	-	-	-	4 226
Home24	3 111 953	-	12.0/12.0	352	-
Millicom	37 835 438	-	37.5/37.5	21 169	20 942
MTG	-	-	-	-	4 645
Qliro Group	42 613 642	-	28.5/28.5	391	767
SDS	-	-	-	-	8
Tele2	20 733 965	166 879 154	27.3/42.0	21 172	15 350
Westwing	2 797 139	-	13.5/13.5	482	-
Zalando	78 427 800	-	31.6/31.6	17 924	34 097
7RWDO /LVWHG +ROGLQJV				61 491	80 035
Babylon			19.6/19.6	500	375
Bayport			21.8/21.8	1 172	1 082
Betterment			16.3/16.3	1 153	1 064
Bread			-	298	-
Cedar			7.5/7.5	142	-
Deposit Solutions			6.9/6.9	274	-
Global Fashion Group			35.4/35.4	3 284	5 239
GoEuro			-	443	-
Home24			-	-	218
Kolonial			15.0/15.0	309	-
Livongo			9.7/9.7	700	105
Milvik/BIMA			33.4/33.4	873	806
Monese			-	202	-
Quikr			17.1/17.1	1 643	1 358
Saltside			60.8/60.8	199	195
Travelperk			13.2/13.2	223	-
Westwing			-	-	479
Other*			-	524	761
7RWDO 8QOLVWHG +ROGLQJV				11 939	11 682

Total 73 430 91 717

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

NOTES FOR THE GROUP

,QYHVWPHQWV LQ ğQDQFLDO DVVHWV	2018 1 Oct 31 Dec	2017 1 Oct 31 Dec	2018 Full year	2017 Full year
Com Hem	-	-	-	3 730
SDS	-	-	-	21
7RWDO /LVWHG +ROGLQJV	-	-	-	3 751
Babylon	2	-	122	144
Betterment	-	-	-	527
Milvik/BIMA	-	106	-	106
Bread	-	-	307	-
Cedar	-	-	141	-
Deposit Solutions	50	-	263	-
GoEuro	-	-	443	-
Home24	-	-	-	38
Kolonial	-	-	328	-
Livongo	111	1	456	113
Monese	-	-	197	-
Travelperk	227	-	227	-
Other	2	9	247	95
7RWDO 8QOLVWHG +ROGLQJV	392	116	2 731	1 023
Total	392	116	2 731	4 774

&KDQJHV LQ XQOLVWHG DVVHWV OHYHO	2018 1 Oct 31 Dec	2017 1 Oct 31 Dec	2018 Full year	2017 Full year
Opening balance	13 671	11 344	11 682	12 291
Investments	392	116	2 731	1 023
Disposals / Exit proceeds	- 5	- 3	- 419	-1 188
Reclassifcation	- 751	1	-1 050	-
Change in fair value	-1 368	224	-1 005	- 444
&ORVLQJ EDODQFH	11 939	11 682	11 939	11 682

NOTE 5 DIVIDENDS RECEIVED

2018 1 Oct 31 Dec	2017 1 Oct 31 Dec	2018 Full year	2017 Full year
449	-	890	883
-	-	610	797
-	-	169	162
-	-	203	68
-	-	-	350
-	-	15	-
449	-	1 887	2 260
449	-	1 887	2 260
449	-	1 872	1 910

NOTE 6 INTEREST BEARING ASSETS AND LIABILITIES

Kinnevik's total interest bearing assets amounted to SEK 623m as of 31 December 2018. The total amount of interest bearing liabilities was SEK 3,371m. Kinnevik was in a net debt position of SEK 2,769m as of 31 December 2018, including loans to investee companies (net debt SEK 1,062m as of 31 December 2017). Net debt excluding loans to portfolio companies amounted to SEK 2,887m.

Kinnevik's total credit facilities (including issued bonds) amounted to SEK 8,980m as of 31 December 2018, whereof SEK 6,000m related to unutilised revolving credit facilities and SEK 2,850m related to bonds.

The Group's available liquidity, including short-term investments and available unutilized credit facilities, totalled SEK 6,116m as of 31 December 2018 (SEK 7,995m as at 31 December 2017).

SEKm	2018 31 Dec	2017 31 Dec
,QWHUHVW EHDULQJ DVVHWV
Loans to investee companies	118	-
Short-term investments	149	1 750
Cash and cash equivalents	337	48
Other interest bearing assets	19	3
7RWDO LQWHUHVW EHDULQJ DVVHWV	623	1 801
,QWHUHVW EHDULQJ ORQJWHUP OLDELOLWLHV
Capital markets issues	2 850	2 850
Accrued borrowing cost	-13	-17
Other interest bearing liabilities	34	30
	2 871	2 863
,QWHUHVW EHDULQJ VKRUWWHUP OLDELOLWLHV
Commercial papers	500	-
	500	-
7RWDO LQWHUHVW EHDULQJ OLDELOLWLHV	3 371	2 863
Net interest bearing liabilities	-2 748	-1 062
Debt, unpaid investments/divestments	-21	0
1HW GHEW IRU WKH *URXS LQFOXGLQJ QHW ORDQV WR LQYHVWHH FRPSDQLHV	-2 769	-1 062

The outstanding loans carry an interest rate of Stibor or similar base rate with an average margin of 0.8%. All bank loans have variable interest rates (up to 3 months) while fnancing from the capital markets vary between 1 to 12 months for the loans under the commercial paper program and 3 to 5 years for the outstanding bonds (as per date of issue).

As of 31 December 2018, the average remaining tenor was 2.9 years for all credit facilities including the bonds. Kinnevik had not provided any security for any of its outstanding loans.

&RQGHQVHG 3DUHQW &RPSDQ\ Income Statement

SEK m	2018 1 Oct 31 Dec	2017 1 Oct 31 Dec	2018 Full year	2017 Full year
Administration costs	-140	-95	-316	-235
Other operating income and costs	3	0	5	5
2SHUDWLQJ ORVV	-137	-95	-311	-230
Dividends received, external	-	-	705	858
Result from associated companies	-	-	6 684	0
Result from subsidiaries	-2 263	-205	-10	8 410
Financial net	-19	-20	-44	-23
3URğWORVV DIWHU ğQDQFLDO LWHPV	-2 419	-320	7 024	9 015
Group contribution	-7	-109	-7	-109
3URğWORVV EHIRUH WD[HV	-2 426	-429	7 017	8 906
Taxes	-	-	-	-
1HW SURğWORVV IRU WKH SHULRG	-2 426	-429	7 017	8 906
7RWDO FRPSUHKHQVLYH LQFRPH IRU WKH SHULRG	-2 426	-429	7 017	8 906

&RQGHQVHG 3DUHQW &RPSDQ\ %DODQFH 6KHHW

SEK m	2018 31 Dec	2017 31 Dec
ASSETS
Tangible fxed assets	4	3
Financial fxed assets	62 932	52 368
Short-term receivables	38	33
Short-term investments	149	1 750
Cash and cash equivalents	202	39
TOTAL ASSETS	63 325	54 193
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity	51 155	48 825
Provisions	26	26
Long-term interest bearing liabilities	2 841	5 117
Short-term interest bearing liabilities	9 196	-
Other short-term liabilities	107	225
TOTAL SHAREHOLDERS' EQUITY AND LIABLITIES	63 325	54 193

The Parent Company's liquidity, including short-term investments and unutilized credit facilities, totalled SEK 6,981m (7,918) at 31 December 2018. The Parent Company's interest bearing external liabilities amounted to SEK 3,341m (2,855) on the same date. Investments in tangible fxed assets amounted to SEK 2m (0) during the period.

Distribution by class of shares on 31 December 2018 was as follow:

	1XPEHU RI VKDUHV	1XPEHU RI YRWHV	3DU YDOXH 6(. 000V
Outstanding Class A shares, 10 votes each	33 755 432	337 554 320	3 375
Outstanding Class B shares, 1 vote each	241 374 737	241 374 737	24 137
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 31 December 2018 to 579,516,338 excluding 536,469 class B treasury shares. On 21 May 2018, the Annual General Meeting of Kinnevik resolved that holders of class A shares should be entitled to reclassify their class A shares into class B shares. Reclassifcation was made possible between 4 June 2018 up to and including 18 June 2018. During this period, 7,401,712 class A shares were requested to be reclassifed into class B shares. In May, 200,000 class C shares were issued and repurchased and reclassifed into class B shares held in treasury in order to ensure delivery of shares to participants in outstanding long-term incentive programs.

A new issue of 587,281 reclassifable, sub-ordinated, incentive shares, divided into four classes, to the participants in Kinnevik's long-term share incentive plan resolved on by the 2018 AGM were registered by the Swedish Companies Registration Offce (Sw. Bolagsverket) during November 2018.

During the year 14,010 class B shares were delivered to participants in the share-based plan from 2015.

The Board has authorization to repurchase up to a maximum of 10% of all shares in the Company over 12 months, ending at the AGM of 2019. There are no convertibles or warrants in issue.

DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES

Kinnevik presents some performance measures in the interim report that are not defned by IFRS. Kinnevik believes that these performance measures adds valuable information to the company's investors and the company's management since they enable assessment of the Kinnevik's and its portfolio companies' performance and position. Since all companies do not calculate their performance measures in the same manner, these are not always comparable with similar measures used by other companies. Such performance measures shall therefore not be used in replacement of measures defned by IFRS.

Alternative performance measures in Kinnevik's interim report include:

Active customers	Number of customers having made at least one order within the last 12 months
Debt/equity ratio	Interest-bearing liabilities including interest-bearing provisions divided by 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	Value of all assets on the balance sheet, less cash and cash equivalents
Total shareholder return, TSR	Annualized total return of the Kinnevik B share on the basis of shareholders reinvesting all cash dividends, dividends in kind, and mandatory share redemption proceeds into the Kinnevik B share, before tax, on each respective ex-dividend date. The value of Kinnevik B shares held at the end of the measurement period is divided by the price of the Kinnevik B share at the beginning of the period, and the resulting total return is then recalculated as an annual rate

KINNEVIK ANNUAL GENERAL MEETING 2019

The Annual General Meeting will be held on 6 May 2019 in Stockholm. Shareholders wishing to have matters considered at the Annual General Meeting should submit their proposals in writing to agm@kinnevik.com or to The Company Secretary, Kinnevik AB, Box 2094, SE-103 13 Stockholm, Sweden, at least seven weeks before the Annual General Meeting, in order for the proposal to be included in the notice to the meeting. Further details on how and when to register will be published in advance of the meeting.

NOMINATION COMMITTEE AHEAD OF THE 2019 ANNUAL GENERAL MEETING

In accordance with the resolution of the 2018 Annual General Meeting in Kinnevik, Cristina Stenbeck has convened a Nomination Committee comprising representatives of Kinnevik's largest shareholders in terms of voting interest. The Nomination Committee comprises Cristina Stenbeck representing Verdere S.à r.l. and Camshaft S.à r.l., Hugo Stenbeck representing AMS Sapere Aude Trust, James Anderson representing Baillie Gifford, Ramsay Brufer representing Alecta, and Marie Klingspor.

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

FINANCIAL REPORTS

Kinnevik's Annual Report 2018 will be published on Kinnevik's website on 29 March 2019. Dates for 2019 reporting:

26 April	Interim Report January-March 2019
19 July	Interim Report January-June 2019
24 October	Interim Report January-September 2019

Stockholm 14 February 2019

The Board of Directors

REVIEW REPORT

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We have reviewed the interim report for Kinnevik AB for the period 1 January - 31 December 2018. 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 14 February 2019

Deloitte AB

Jan Berntsson Authorized Public Accountant

This information is information that Kinnevik AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at 08.00 CET on 14 February 2019.

For further information, visit www.kinnevik.com or contact: Torun Litzén Director Investor Relations Phone +46 (0)70 762 00 50 Email press@kinnevik.com

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