Financial risk management

Kinnevik’s approach to financial risk management aims to identify, control and mitigate or reduce financial risks threatening the growth in Net Asset Value and/or the continued execution of Kinnevik’s strategy. These risks mainly revolve around:

• the accuracy of Kinnevik’s assessed valuations of its investments in private companies (“Valuation Risk”);
• the risk of Kinnevik not being able to finance its desired investment pace, or by extension not being able to refinance maturing loans and credit facilities and failing to meet payment obligations (“Liquidity and Financing Risk”);
• the risk of transaction and translation exposure to foreign currencies (“Foreign Exchange Rate Risk”); and
• the risk of increasing interest rates having an adverse impact on financing costs (“Interest Rate Risk”).

The oversight and management of financial risks is centralized to the CFO office and governed by a Finance Policy and a Risk Management Policy. On an annual basis, these policies are reviewed and updated by the CFO office and approved by the Audit & Sustainability Committee and the Board of Directors.

Valuation Risk

On 31 December 2025, 97 percent of Kinnevik’s portfolio was invested in private companies (96 percent at the end of 2024). The assessed valuation of these investments can fluctuate meaningfully. Many of Kinnevik’s private companies are fast-growing and loss-making businesses where financial performance can be volatile, deviate meaningfully from expectations, and oscillate around longer-term trends. Furthermore, these investments are subject to developments in public growth equity markets, which have proved to be highly sensitive to macroeconomic conditions and fiscal policy. In the process of valuing its investments in private companies, Kinnevik follows best-in-class standards and takes numerous factors into consideration. How the valuations of Kinnevik’s investments in private companies are assessed is outlined in detail in Note 2 for the Group in this Annual Report.

For Kinnevik’s investments in private companies that are valued based on the market approach applying multiples of revenue, gross profit, or operating profit – an increase in revenue multiples by 10 percent would have increased the aggregate assessed fair value as at 31 December 2025 by SEK 2.0bn (2.2). A decrease in revenue multiples by 10 percent would have decreased the aggregate assessed fair value by SEK 1.9bn (2.1).

Liquidity and Financing Risk

Kinnevik’s liquidity and financing risk is highly limited considering its SEK 8.6bn net cash position at the end of 2025. Over the coming years, Kinnevik relies on capital reallocation within its portfolio of mainly private companies and external sources of financing, to fund its investments, its operations, and to maintain its financial flexibility.

On 31 December 2025, Kinnevik had cash and cash equivalents and shortterm investments amounting to SEK 10,392m (14,619) and committed but not utilized credit facilities amounting to SEK 4,230m (4,230). Debt financing is sourced from several institutions with diversified maturities, and Kinnevik strives to refinance all facilities at least six months prior to maturity. On 31 December 2025, the total amount of committed debt financing was SEK 6,230m (7,730) with an average remaining facility duration of 1.4 (1.9) years. Net cash amounted to SEK 8,561m (10,940). For further details, refer to Note 10 for the Group.

Foreign Exchange Rate Risk

Foreign exchange rate risk comprises transaction and translation currency exposure. Transaction exposure arises from cash flows denominated in foreign currencies. Kinnevik’s investments in USD during the year amounted to 42 percent of total investments (54 percent) and 58 percent (34 percent) in EUR. Kinnevik’s debt funding and cash position are almost entirely denominated in SEK. Excluding investments and divestments, Kinnevik does not have any material cash flows in foreign currencies.

Translation exposure arises from the translation of balance sheet items denominated in foreign currencies into SEK. Kinnevik’s balance sheet is mainly exposed to foreign exchange risk through investments denominated in either USD or EUR. On 31 December 2025, 64 percent (67 percent) of Kinnevik’s portfolio value was denominated in USD, and 30 percent (27 percent) was denominated in EUR. Kinnevik is also exposed to indirect translation exposure, as several of its investee companies operate internationally, whereby foreign currencies have an indirect effect on the value of these investments. The basket of foreign currencies in which Kinnevik’s investments are denominated appreciating or depreciating by 10 percent against the SEK would have increased or decreased the portfolio value by SEK 2.7bn (2.8). The corresponding impact from the appreciation or depriciation of solely the USD or EUR would have been SEK 1.8bn (1.9) and SEK 0.8bn (0.8) respectively.

Interest Rate Risk

Kinnevik’s interest rate risk (outside of interest rates’ effects on valuations of Kinnevik’s private companies) pertains to the value of interest-bearing receivables and liabilities changing due to adverse changes in market interest rates.

On 31 December 2025, none of Kinnevik’s interest-bearing liabilities, SEK 2.0bn (3.5), were exposed to interest rate changes. SEK 2.0bn (3.25) of Kinnevik’s SEK 2.0bn (3.5) in outstanding bonds were originally exposed to interest rate risk with floating rates (three-month STIBOR). This interest rate risk has been hedged by entering into interest rate swaps maturing on the same dates as the relevant bonds. On 31 December 2025, these swaps had a market value of SEK 38m (79). An increase of 1 percent in interest rates at the reporting date would have increased the market value of the swaps by SEK 24m. A decrease of 1 percent in interest rates would have decreased the market value of the swaps by SEK 25m. In connection with refinancing of current bonds and credit facilities, or if Kinnevik were to increase its receivables or liabilities considerably, the interest rate risk may change materially.