Kinnevik Results Presentation Deck
October 2022, 44 slides
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interim report first nine months of | Kinnevik
challenging markets puts a strain on growth investing while also presenting opportunities net asset value change in change in one year five year key financial data in this environment our strong financial position and the strides we have taken in building out a broad significant and balanced growth portfolio allow us not only to double down in the existing portfolio but also to explore new and adjacent themes and sectors in addition we are looking for opportunities for dation such as the proposed combination of and | Kinnevik
highlights in the quarter key events investment management activities events after the quarter financial position ambition is to be leading listed growth investor and we back the best digital companies for a everyday and to deliver significant returns we understand complex and fast changing consumer behaviours and have a strong and expanding portfolio in consumer services and as a long term investor we strongly believe that investing in sustainable business models and diverse teams will bring the returns for shareholders we back our companies at every stage of their journey and invest in with a focus on the and in the us was founded in by the and horn families shares are listed on list for large cap companies under the ticker codes a and announced they joining forces power push boundaries consumer centric invested into industrial green chemicals fuels this first sizeable into climate tech announced part industry leading cloud based platform service or year to date folio value quarter end percent compared traditional steelmaking assume chief officer effective from | Kinnevik
chief executive review dear shareholders geopolitical and unrest continues to provide a challenging market backdrop for investors for the pressure on market multiples has had a negative impact on valuations and the environment is clearly more demanding than last year however our pipeline remains strong albeit with deal flow coming at a pace in this environment our strong financial position and the strides we have taken in building out a broad significant and balanced growth portfolio allow us not only to double down in the existing portfolio but also to explore new and adjacent themes and sectors in addition we are looking for opportunities for consolidation such as the proposed combination of and results our net asset value amounted to or per share at the end of the third quarter of down by or percent from where we ended the second quarter and percent below where we ended the fair value of our unlisted assets was written up by or percent in the quarter but would have been down by without the continued currency on aggregate multiples were largely stable write downs were focused on our grocers and oda where the public market peers continued to face material multiple contraction in addition in the case of top line caused further pressure on the valuation write ups were centered around our value based care holdings and where public market peers moved in the opposite direction transaction supported valuations and strong operational performance also provided a positive impact in and our balance sheet remains solid with a net cash position of at the end of the quarter providing gross runway well into late at a maintained investment momentum with invested year to date and several ongoing investment processes we believe we are likely to deploy slightly more than our target strong growth in value based care our value based care assets and to execute on their growth path now operates well over clinics in the us both located with and the company is growing strongly and expanded in and also continued expanding substantially coming out of covid and recently expanded into with a partnership with the second managed organization in also launched a rebrand which highlights the key components of its success making more human centered and equitable for communities has faced a tough journey in the market since going public last year last week the company announced the intention to divest a network of physicians providing physical care in to focus on its core business through further investment in its digital first contracts in addition the company is raising in new funding in a private placement where will invest approximately three times our pro rata the company expects to be funded to break even a focus which we fully support market environment drives consolidation with capital and more demanding now than in the more recent past companies are looking to strengthen their growth and earnings profile through consolidation in ber and announced their plans to join forces in the new combined company the combination which is subject to approval from the competition authority would create a sector leader in consumer centric and sustainable last mile delivery services for commerce for the transaction serves as a true testament of our unique ability to invest early and back our companies consistently through their growth journey we first invested in in and since then the company has grown its revenues by meanwhile we have generated a return on our initial investment and supported the growth journey by investing at or above pro rata in every funding round since then with an aggregate return on investment to date investing to combat climate change our strong financial position and the strides we have made in building out a broad significant and balanced growth port folio allow us to explore themes and sectors adjacent to our current ones one such area is climate tech as climate change remains the and most pressing challenge facing the global economy reaching the degree target stipulated in the agreement will require massive investments and changes across industries has always been a backer of challengers investing in disruptive companies that can significantly upend their sectors making us well placed to serve as an attractive partner to companies in this space during the quarter we made our first investment into the climate tech area with a investment into the global chemicals industry is a trillion market responsible for percent of global carbon | Kinnevik
sions is a based company that aims to the chemicals industry founded by and hunt in the company has and is now scaling an industrial green chemicals platform that produces and more environ mentally friendly chemical products from sugar rather than petroleum is a global leader in clean chemistry and we are very excited to be able to support this journey with our investment and partnership in we invested into green steel the producer of green steel steel today makes up around percent of carbon emissions globally and is therefor together with chemicals one of the most important areas to target first in the clean industrial revolution as a first step green steel is developing a fully integrated digitalized and sustainable plant in boden northern where the company will produce green steel reducing carbon emissions by up to percent compared to traditional steelmaking and steel is only the beginning their in green hydrogen will enable green steel to also decarbonize other heavy industries management changes in we announced that will take over as chief financial officer at on replacing erika who is moving into a role as senior advisor to our companies has been instrumental in developing the strategic and framework that underpins our financial decision making reporting and communication and i look forward to working net cash position closely with him as we continue to transform into a leading growth investor concluding remarks despite the current market and increased risk aversion our conviction in the strategy and the long term power of technology has not changed however the full effect of an economic downturn remains to be seen we are focused on maintaining our investment momentum and seizing the opportunities that arise while ensuring we continue to be disciplined in our allocation of capital i would like to thank all shareholders for your continued support climate change remains the and most pressing challenge facing the global economy and reaching the degree target stipulated in the agreement will require massive investments and changes across industries interim report | Kinnevik
in summary total shareholder return five year per category investment activity investments composition of portfolio value a development | Kinnevik
net asset value growth portfolio | Kinnevik
net asset value growth portfolio | Kinnevik
net asset value legacy assets financial position assessments of fair value of unlisted investments totality growth portfolio composition portfolio interim report an assessment to establish the valuation methods and points mining the each our | Kinnevik
empowering people to live their lives by transforming the experience digital service combining mobile tech and artificial intelligence with medical a leading us based provider of primary care and a pioneer in the delivery of value based care fair value the world first digital clinic delivering a comprehensive medication assisted treatment program for multiple addictions virtually fair value revenue adjusted margin stake par is nee village stake paid membership eas is is quit genius | Kinnevik
value based provider focused on urban populations with complex care needs spring health is making mental health fundamental providing employers with the most diverse comprehensive care for employ and their families holistic virtual first consumer subscription service caring for and supporting chronic conditions for women a new and different health and care experience company for of self insured employers and their families sey parsley | Kinnevik
platforms customer centric last mile logistics plat form for commerce businesses leading independent grocery retailer reaching more than half of all households the leading grocery store in with the ambition to make grocery shopping an effort less activity fair value residential brand and tech enabled managed rental housing in the us tes a new group announced they are joining forces new combined subject approval from she authority pane push boundaries consumer sustainable delivery services sector first invested since then company has grown its revenues by aggregate return on our investment corresponds over date our first investment have generated a return this serves as a true testament unique ability invest early back our companies consistently through their development power invest platform or sate air stake wen number new merchants lime lid lin me oda stake is common a is interim report | Kinnevik
platforms a global leader in food delivery the world leading digital temp staffing agency the modal travel platform in operating in countries the world leading wine fair value stake total number of users fair value stake interim report | Kinnevik
offers smart payment cards to employees while making sure the company remains in full control of spending provides a way for hospitals health systems and medical groups to manage the patient payment ecosystem the leading global enabling the insurance industry to reach its full potential in an era provides an end to end service to support and guide businesses hiring talent globally number cedar omnipresent | Kinnevik
consumer finance us based smart money manager offering investing and retirement solutions the first fully mobile current count in the financial technology company that lets consumers and ses handle everything money in one place betterment lunar stake signed up customers coma lea yen nes a announced a by investment is part investment of a strategic partnership will focus on industry leading cloud platform as a service business new funding will support continued growth of platform | Kinnevik
early bets new themes supporting farmers transition to regenerative agriculture practices through the voluntary carbon market enables the distribution of flight such as seat selection luggage and priority boarding through an solution digital health company that connects patients with therapists to deliver an on line evidence based treatment for chronic joint pain restaurant platform enabling table ordering payment and pick up and a sustainable food platform allowing retailers to sell surplus food with a discount born global food tech innovator of healthy and indulgent snacks and ice cream offers a unique global travel and health insurance plan to help firms set themselves apart by offering better benefits to remote the first all in one guest management platform for restaurants a berlin based tech enabled mobility company that is on track to launch a mobility service with electric on public streets nick superb vested in direct capital second fund fund will be predominantly focused growth stage companies developing technologies related capture we made he investment deepen our strategic ties fund have emerged one foremost thought leaders within climate whose portfolio contains many he emerging companies within space alongside its investment siness direct also operates highly complementary scientific advisory business hat assists its investment team technical diligence pipeline building it this combination makes combined entity highly firm led who has background in energy investing institutional asset climate change | Kinnevik
early bets new themes green chemicals producer providing chemicals without using fossil fuels the global chemicals industry is a lion market which responsible for percent of global emissions physician scientist and his research invested into in third quarter based premier company that aiming to that gen has developed now scaling an industrial platform that uses biologically engineered enzymatic catalysis metal catalysis to produce organic acids platform from sugar instead petroleum resulting in more environmentally friendly chemical pro ducts company was founded by hunt whilst they were completing their at university respectively around role can play in cancer therapy whilst focused on proving traditional chemical manufacturing methods two founders connected over fact they were both researching same problem from different angles it that same that now underpins technology in they were both named in under list joined combinator accelerator as one relatively few non companies to be admitted with growing demand from some biggest industrial powerhouses in world industrial grade specialty have significant value proposition product portfolio has use cases across treatment energy this list will also con ducts from their extensive pipeline price performance fit in those industries whilst helping to spark decarbonization movement in parallel as an indicator company potential environmental impact by they plan to have sequestered carbon equivalent removing two million cars from road another company major design its highly modular low manufacturing plants or ges first has proven its ability to scale at strong gross margins will provide blueprint construction another production facilities that can be located with suppliers or customers by additionally company competitive passion advantages are safeguarded by extensive intellectual property across formulations applications their internal processes as well as enzymes catalysts that enable their credibly complex problems along with support their highly impressive team has enabled them to build into world leader in clean chemistry space we are very excited to be able to support them on this journey biology in unconventional ways to solve in founder hunt founder | Kinnevik
other portfolio enables mobile and fixed connectivity telephony data and streaming emerging markets the leading fashion and retail destination in growth markets revenue fair value stake tele adjusted margin a revenue generating units global group fair value stake interim report a | Kinnevik
two founders included in fortune list of the most powerful women in business magazine fortune most powerful women list ranks the most influential executives in global business some of the leaders of tomorrow big businesses however are for now running still private to reflect that future fortune this year published a list of some of the most influential women leaders working across two founders in portfolio were in the list this year and we be more that not one but two of our incredible female foun made fortune list of the most powerful women in and we honored to support you and your businesses as you work to make mental and physical more accessible for all we can wait to see where you take health and spring health next and of course to all of the amazing women on the list you an inspiration to founders investments into female founded businesses remains small in the us market mixed gender founding teams took in of dollars last year while female only founding teams claimed according to the trend is similar throughout everywhere of mixed gender founder founder | Kinnevik
financial review amended capital allocation framework during the third quarter we invested of which into our new climate tech business we also invested second fund in the first nine months of we have deployed in total with a percent split between existing and new companies with a vibrant pipeline and a number of ongoing investment processes we believe we are likely to deploy slightly more than our target for the full year has its to reflect the improvements to the balance of its growth portfolio going forward our expectations are to invest half of our into first round investments and the other half into follow on investments in our existing portfolio add up to eight new companies per year seek to build an adequate level of influence in our companies rather than specific ownership stakes build and maintain a portfolio across different stages of maturity with companies making up the lion share of portfolio value | Kinnevik
capital structure financial targets as at had a net cash position of corresponding to percent of portfolio value this net cash position was mainly made up of in cash bonds with a remaining tenor exceeding months attractive returns objective is to generate a long term total return to our shareholders in excess of our cost of we aim to deliver an annual total shareholder return of percent over the business cycle given the nature of investments our goal is to carry low leverage not exceeding percent of portfolio value shareholder remuneration policy generates shareholder returns primarily through appreciation and will seek to return excess generated by its investments to shareholders through extra dividends interim report | Kinnevik
group financial statements consolidated income statement and report concerning total comprehensive income interim | Kinnevik
consolidated statement of cash flow interim report | Kinnevik
supplementary cash flow information interim report | Kinnevik
condensed consolidated balance sheet sen note interim report | Kinnevik
condensed consolidated balance sheet sen debt equity ratio note interim report | Kinnevik
condensed report of changes in equity for the group interim | Kinnevik
notes for the group note accounting principles note risk management note related party transactions | Kinnevik
note financial assets accounted at fair value through profit loss | Kinnevik
value drivers in the unlisted portfolio multiple changes | Kinnevik
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be omnipresent parsley health interim report | Kinnevik
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interim report | Kinnevik
note dividends received note interest bearing assets and liabilities | Kinnevik
parent company financial statements condensed parent company income statement interim report | Kinnevik
condensed parent company balance sheet | Kinnevik
condensed parent company balance sheet interim report | Kinnevik
distribution by share class per interim report | Kinnevik
definitions and alternative performance measures interest bearing liabilities including unpaid investments divest gross cash net outstanding receivables relating to portfolio companies less gross debt applies the guidelines on other than a financial measure defined or specified in the cable financial reporting framework for consolidated accounts this typically means are disclosed when they complement defined by the basis for disclosed are that they are used by management to evaluate the in so believed to give analysts other stakeholders valuable information of all used are found below reconciliations of a of can be found on corporate the annual rate of return calculated in quarterly intervals on a the beginning end of the respective measurement period dividends in kind loans to portfolio companies the value weighted average number of years until maturity for all credit facilities including outstanding bonds market value of all outstanding shares in at the end of the period interest bearing liabilities including interest bearing provisions divided by shareholders equity net value of all assets on the balance sheet equal to the sha equity shareholders equity as a percentage of total assets interest bearing receivables change in net asset value without adjustment for dividend paid or other transactions with shareholders total net asset value attributable to each share based on the number of shares outstanding at the end of the period gross cash less gross debt percentage of portfolio value on the average number of shares outstanding during the period before after dilution rough profit or loss total return of the share on the basis of mandatory share redemption proceeds into the of shares held at the end of the measurement period is divided by the price of the share at the beginning of the period the resulting total return is then recalculated as an annual rate | Kinnevik
other information dates for reporting year end release interim report march interim report june interim report to make public pursuant to the market abuse regulation and the securities markets act the was submitted for publication through the agency of the contact person set out litz director investor relations press status this statement is provided for shareholders who are united states persons for the purpose of the united states internal on status as a passive foreign investment taxable year ending is available on at under the heading tax which can be found under the section investors you should contact your tax advisers regarding the consequences ambition is to be leading listed growth investor and we back the best digital companies for a everyday and to deliver significant returns we understand complex and fast changing consumer behaviours and have a strong and expanding portfolio in consumer services and as a long term investor we strongly believe that investing in sustainable business models and diverse teams will bring the returns for shareholders we back our companies at every stage of their journey and invest in with a focus on the and in the us was founded in by the and horn families shares are listed on list for large cap companies under the ticker codes and interim report | Kinnevik
press | Kinnevik
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