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Kinnevik’s Interim Report 1 January – 31 March 2024

18 April 2024, 8:00 AMRegulatory information
”With Kinnevik’s divestment of its entire stake in Tele2 to iliad/NJJ announced in the first quarter, we are completing our strategic transformation to a growth-focused investment firm that we commenced some six years ago. Our Board of Directors has decided to recommend a SEK 6.4bn extraordinary cash distribution, providing shareholders a significant yield while ensuring that Kinnevik has the financial strength and flexibility to capture the many opportunities that will arise over the coming years. Against a stabilizing market backdrop, our core growth companies continued to grow and improve profitability. However, WBA’s impairment charge related to VillageMD goodwill impacted NAV negatively in a meaningful way in the quarter.”

Georgi Ganev, CEO of Kinnevik

Key Events

  • We announced the divestment of our full shareholding in Tele2 to iliad/NJJ for a total consideration of SEK 13bn. The three-step transaction is progressing according to plan, and is expected to close sequentially in Q2 and Q3 2024, with the first step completed in Q1
  • The Board intends to propose an extraordinary cash distribution of SEK 23 per share, or SEK 6.4bn in total. This follows the Board’s capital structure review undertaken after agreeing on the divestment of Tele2, is subject to completion of the second step of the transaction in Q2 2024, and will be proposed to the AGM to be held on 3 June 2024
  • In line with our commitment to double down on our highest conviction businesses, we led a USD 110m funding round in Mews, the leading vertical software and payment solution for hotels. We also announced our participation in a USD 58m funding round in Pelago, the pioneering substance use management platform, with a USD 8m investment paid in Q4 2023. The round was led by Atomico Growth with participation from all other existing investors
  • The value of our unlisted portfolio was down 5 percent in the quarter, driven primarily by a significant write-down of VillageMD, reflecting a goodwill impairment by controlling shareholder WBA. Without the VillageMD write-down, the unlisted portfolio was up 3 percent

Investment Management Activities

  • We invested SEK 510m in the quarter, of which SEK 448m into our core growth companies:
    • SEK 419m into Mews, leading their new funding round
    • SEK 29m into Pleo, through smaller secondary purchases
  • We released SEK 2.8bn from Tele2, closing the first step of our SEK 13bn full divestment

Financial Position

  • NAV of SEK 47.9bn (SEK 170 per share), down SEK 0.2bn or 0.5 percent in the quarter, and down SEK 7.5bn or 14 percent compared to Q1 2023
  • Net cash position of SEK 10.3bn, or 13.9bn pro forma the Tele2 divestment and the Board’s proposed SEK 6.4bn extraordinary cash distribution

A conference call will be held today at 10.00 CET to present the results.

Link to the webcast (listen only):

Those who wish to ask questions during the conference call are welcome to register via the below link. Participants will receive dial-in numbers and confirmation code upon registration. Please make sure to register and dial in a few minutes before the call begins.

Link to conference call (for participants):