Kinnevik’s Year-End Release 2023
01 Feb 2024, 08:00 am · Regulatory information
”2023 was a challenging year. Several of our companies did not meet our performance expectations, which is reflected in the weak development of our Net Asset Value during the year. On the other hand, we doubled down in our highest-conviction companies, taking advantage of our strong financial position and permanent capital allowing us to invest when many need to exit. We made selected new investments in our focus sectors, and we limited deployment into companies lacking traction. As a result, we headed into 2024 with a stronger and more concentrated portfolio, and with a SEK 7.9bn net cash position.”
Georgi Ganev, CEO of Kinnevik
Key Events
- In January, TravelPerk announced a USD 104m equity funding round led by new investor SoftBank. Kinnevik also invested further in the company through an anchor investment in the second quarter 2023 as part of this round
- Aira completed a financing round of EUR 145m, upsized from the initial EUR 85m target, supported by a co-leading investment from Kinnevik partner Temasek
- The unlisted portfolio was written down by SEK 3.5bn or 11 percent during the quarter, reflecting scrutinized forecasts and contracting multiples, several unchanged valuations due to transactions in line with Q3 marks and significant cuts in long-tail companies, as well as SEK 1.7bn currency headwind
Investment Management Activities
- We invested SEK 363m in the quarter, including:
- SEK 138m into Oda/Mathem
- SEK 96m into Pleo
- During full-year 2023, we invested SEK 4.9bn in aggregate, focused on follow-on investments into our highest conviction companies with a record-high SEK 1.5bn deployment into secondary equity
- We released SEK 1.4bn in aggregate through divestments during 2023, bringing full-year net investments to SEK 3.5bn
Financial Position
- NAV of SEK 48.2bn (SEK 171 per share), down SEK 2.6bn or 5% in the quarter, and SEK 4.7bn or 9% in the full-year
- Net cash position of SEK 7.9bn, corresponding to 19 percent of portfolio value by year-end
- Leaving six years of building a new portfolio behind us, in 2024 we enter a new phase focused more on portfolio concentration driven increasingly by investee operational performance, during which we expect SEK 3-5bn in net investments per annum on average over the next three years
A conference call will be held today at 10.00 CET to present the results.
Link to the webcast (listen only):
https://edge.media-server.com/mmc/p/xh6jdiin
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):
https://register.vevent.com/register/BI5e87cb3471774ec0ae7eed47ba690114