Kinnevik: Interim report 1 January - 31 March 2020

17 Apr 2020, 8:00 AM · Regulatory information

”We are impressed by all our companies’ ability and agility in facing the new reality, and we are supporting them to ensure that, even as they make short term adjustments to save costs and safeguard their financial positions, they remain focused on long term value creation”

Georgi Ganev, CEO of Kinnevik

Key Developments

  • Consumer Services: Nordic online groceries have experienced a surge in demand with record customer intake, operating at maximum capacity. Fa-shion e-Commerce has suffered from lower sales growth resulting in inventory write-downs, though showing relative resilience compared to phy-sical retailers. The crisis' effect on the travel industry has been severe, and our companies are focusing on product development and continued customer acquisition
  • Financial Services: Extreme market volatility has negatively impacted our companies’ short-term performance, but they have a loyal and engaged customer base, and a steady inflow of deposits and engagement
  • Healthcare Services: Our digital health companies are working hard to service their populations and clients, with restrictions on mobility increasing the number of people seeking virtual medical care
  • TMT: Operating in a resilient sector providing connectivity at a time of social distancing, Tele2 is well placed to provide its important services to its customers

Investment Management Activities

  • Total investments of SEK 403m in the quarter, including:
    • SEK 150m in MatHem’s funding round, bringing our ownership stake to 36%
    • SEK 106m in Budbee’s funding round, bringing our ownership stake to 30%
    • SEK 74m in Town Hall Ventures’ Fund II

Financial Position

  • NAV of SEK 64.9bn (SEK 235 per share), down SEK 8.4bn or 11% in the quarter with some overall currency tailwind
  • Net debt position of SEK 1.5bn, corresponding to a leverage of 2.2% of Portfolio Value
  • Kinnevik issued SEK 1.5bn in new bonds in the quarter

Organisation

  • Erika Söderberg Johnson joined Kinnevik as Chief Financial Officer on 6 April 2020
  • Anna Stenberg will join Kinnevik as Chief People and Platform Officer in May 2020

A conference call will be held today at 10.00 CET to present the results. The presentation will be held in English and also be made available via audiocast on Kinnevik’s website, www.kinnevik.com.

Link to the audiocast: https://edge.media-server.com/mmc/p/mx4cincq

Those who wish to participate in the conference call are welcome to dial-in on the below numbers. To ensure that you are connected to the conference call, please dial in and register your attendance a few minutes before the conference call begins.

Dial-in numbers:
UK: +44 3333 000 804
SE: +46 8 566 426 51
US: +1 631 913 1422

Confirmation code: 73624137#

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 17 April 2020.

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

Kinnevik is an industry focused investment company with an entrepreneurial spirit. Our purpose is to make people’s lives better by providing more and better choice. In partnership with talented founders and management teams we build challenger businesses that use disruptive technology to address material, everyday consumer needs. As active owners, we believe in delivering both shareholder and social value by building long-term sustainable businesses that contribute positively to society. We invest in Europe, with a focus on the Nordics, the US, and selectively in other markets. 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.