Kinnevik: Year-End Release 2017

9 Feb, 2018, 08:00 AM · Regulatory information

Q4 2017: OPERATING COMPANIES' PERFORMANCE

  • Zalando had profitable growth in the fourth quarter and delivered on its full-year guidance
    Preliminary fourth quarter revenue growth of 21.2-23.2% and an EBIT margin of 8.1-8.9%
  • Millicom reported continued positive growth in Latin America driven by the transition to high-speed data services
    Organic fourth quarter service revenue growth of 2% and an EBITDA margin of 36%
  • Tele2 ended the year with strong organic business momentum, delivering on or exceeding full-year guidance
    Fourth quarter revenue growth of 5% and an EBITDA margin of 23%
  • Com Hem had another quarter of strong volume growth in the Com Hem Segment
    Fourth quarter revenue growth of 1.4% and an organic underlying EBITDA margin of 40%
  • MTG reported record sales, strong growth and increasing profits in the quarter
    Organic fourth quarter revenue growth of 10% and an EBIT margin of 9%

FY 2017: OPERATING COMPANIES' PERFORMANCE
  • Zalando had preliminary full-year revenue growth of 23.1-23.7% and an EBIT margin of 4.7-4.9%
  • Millicom had organic full-year service revenue growth of 0.2% and an EBITDA margin of 36%
  • Tele2 had full-year revenue growth of 18% and an EBITDA margin of 26%
  • Com Hem had full-year revenue growth of 26% and an underlying organic EBITDA margin of 41%
  • MTG had full-year revenue growth of 8% and an EBIT margin of 7%

INVESTMENT MANAGEMENT ACTIVITIES

  • Fourth quarter total investments of SEK 116m, whereof SEK 106m in BIMA. Net investments amounted to SEK 113m in the quarter
  • Full-year total investments of SEK 4.8bn, whereof SEK 3.7bn into Com Hem. Total divestments of SEK 5.3bn, whereof SEK 4.1bn from the sale of Rocket Internet

FINANCIAL POSITION

  • Net Asset Value of SEK 90.6bn (SEK 329 per share) per 31 December 2017
    • Up SEK 5.0bn or 6% during the fourth quarter, led by a SEK 2.1bn increase in Zalando and a SEK 1.1bn increase in Tele2
    • Up SEK 18.2bn or 25% during the full year
  • Net debt position of SEK 1.1bn per 31 December 2017, corresponding to a leverage of 1%

2017 DIVIDEND RECOMMENDATION

  • Kinnevik's Board of Directors recommends an ordinary dividend of SEK 8.25 per share for 2017, a yearly increase of 3.1%, and equivalent to a dividend yield of 3.0%
  • The Annual General Meeting will be held on 21 May 2018

EVENTS AFTER THE REPORTING PERIOD

  • On 10 January 2018, Tele2 and Com Hem announced that their Boards of Directors has agreed to merge the two companies to create a leading integrated operator
  • On 1 February 2018, MTG announced that it has agreed to combine its Nordic businesses with TDC Group, creating a fully convergent media and communications provider

A conference call will be held today, 9 February 2018, at 10.00 CET to present the results.

Link to the audiocast: https://edge.media-server.com/m6/p/q3tcir8t

Dial-in numbers:
UK: +44 20 3364 5374
SE: +46 8 505 564 74
US: +1 855 753 2230

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 9 February 2018.

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

Kinnevik is an industry focused investment company with an entrepreneurial spirit. 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.