Kinnevik: Year-End Release 2016

10 Feb 2017, 8:00 AM · Regulatory information

Operating companies' performance

  • Zalando had preliminary fourth quarter revenue growth of 25-26% and an EBIT margin of 7.5-9.5%. For the full year, Zalando delivered preliminary revenue growth of 23% and an EBIT margin of 5.6-6.2%, in line with guidance
  • Millicom's largest market Latin America reported cable and mobile data revenue growth of 6% and 17% respectively during the fourth quarter, and the adjusted EBITDA margin amounted to 36% for the group. Organic service revenues grew 1.2% for the full year 2016, with an adjusted EBITDA margin of 36%
  • Tele2 grew fourth quarter revenues by 18% and achieved an EBITDA margin of 18% for the fourth quarter and 19% for the full year. Revenue growth for the full year amounted to 5%
  • MTG reported an organic revenue growth of 8% and an EBIT margin of 11% for the fourth quarter. For the full year, MTG had organic revenue growth of 5% and an EBIT margin of 8%

Investment management activites

  • Kinnevik made investments of SEK 971m in the fourth quarter of 2016, whereof SEK 898m in Tele2's SEK 3bn rights issue financing the acquisition of TDC Sweden. Net investments amounted to SEK 872m in the quarter
  • Full-year investments of SEK 3.4bn, focused primarily on investments in existing companies. Net investments amounted to SEK 2.8bn

Financial position

  • Net Asset Value of SEK 72.4bn (SEK 263 per share) per 31 December 2016
    • Down SEK 2bn, or 3%, since last quarter-end, driven by a SEK 1.9bn, or 3%, decrease in the value of the listed investee companies
    • Down SEK 11bn, or 13%, for the full year 2016, whereof SEK 7.1bn was distributed to shareholders
  • Net debt position of SEK 1.4bn per 31 December 2016, corresponding to 2% of portfolio value

Refined return and leverage 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

2016 Dividend recommendation

  • Kinnevik's Board of Directors recommends an ordinary dividend of SEK 8.00 per share for 2016, an increase of 3.2% from last year's ordinary dividend (SEK 7.75 per share), equivalent to a dividend yield of 3.7%
  • The Annual General Meeting will be held on 8 May 2017

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 10 February 2017.

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

Torun Litzén, Director Investor Relations

Phone +46 (0)8 562 000 83
Mobile +46 (0)70 762 00 83

Kinnevik is an industry focused investment company with an entrepreneurial spirit at its heart. Our purpose is to build the digital consumer businesses that provide more and better choice. We do this by working in partnership with talented founders and management teams to create, invest in and lead fast growing businesses in developed and emerging markets. We believe in delivering both shareholder and social value by building well governed companies that contribute positively to society. Kinnevik was founded in 1936 by the Stenbeck, Klingspor and von Horn families.