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INTERIM REPORT FIRST HALF OF 2021
Interim Report Q2 2021
OUR PIVOT CONTINUES
With the Zalando distribution completed, we continue our pivot and strengthen our
strategic focus on younger digital innovators that aim to reimagine everyday lives while
generating sustainable returns over the long-term.
Georgi Ganev, CEO of Kinnevik
Key Strategic Highlights Investment Management Activities
• We distributed our Zalando investment to our shareholders • We invested SEK 734m in the quarter, including:
• Babylon will become a public company through merging with • SEK 227m into Pleo
the SPAC Alkuri Global Acquisition Corp. • SEK 149m into Mathem
• Pleo raised USD 150m in a funding round that firmly places the • SEK 191m into Parsley Health
company among Europe's leading fintech players
• SEK 81m into Superb
• We increased our valuation of Budbee materially, reflective of
continued strong operational performance and investor appetite
for last-mile e-commerce delivery businesses Financial Position
• We led a EUR 12m funding round in Superb, the first all-in-one • NAV of SEK 76.2bn (SEK 274 per share), up SEK 12.6bn or
guest experience management platform for restaurants 11% in the quarter
• We invested USD 23m into Parsley Health, a holistic virtual-first • Net cash position of SEK 4.3bn, including SEK 563m in divi-
consumer subscription service that offers personalised doctor- dends from Tele2 received in early July, corresponding to 6%
led care and support for chronic conditions for women of portfolio value by quarter-end
• Our NAV was impacted by negative share price development
in Teladoc Events After the Quarter
• Women now make up 38% of our investment team
• In July we invested USD 49m into Lunar, the leading Nordic chal-
• Kinnevik was awarded a green light by the Haga Initiative, a bu- lenger bank, alongside our former Zalando partners Heartland
siness network that strives to reduce the sector's climate impact
Key Financial Data
SEKm 30 Jun 31 Mar 31 Dec 30 Jun Net Asset Value (SEK)
76.2bn
2021 2021 2020 2020
Net Asset Value 76 178 117 752 111 671 89 577
Net Asset Value per Share, SEK 274.05 423.91 402.02 322.50
Share Price, SEK 344.80 425.15 417.35 245.00
Net Cash / (Debt) 4 320 3 895 4 817 5 522 Change in NAV Q/Q
SEKm Q2
2021
Q2
2020
H1
2021
H1
2020
FY
2020
11%
Net Profit / (Loss) 12 489 24 643 18 561 16 271 40 274
Net Profit / (Loss) per Share Pre Dilution, SEK 44.95 89.09 66.80 58.82 145.29
One-Year TSR
138%
Net Profit / (Loss) per Share Post Dilution, SEK 44.95 89.03 66.80 58.78 145.22
Change in Fair Value of Financial Assets 11 450 24 273 17 586 15 977 39 850
Dividends Received 1 126 516 1 126 516 1 689
Dividend Paid, In Kind -54 116 - -54 116 - -
Dividend Paid, Cash -44 - -44 - -1 928 Five-Year Annualised TSR
34%
Investments 734 400 1 740 803 2 329
Divestments -43 -6 928 -250 -6 929 -8 871
2
Interim Report Q2 2021
CHIEF EXECUTIVE’S REVIEW
Dear Shareholders, with the Zalando distribution completed, we continue our pivot and
strengthen our strategic focus on younger digital innovators that aim to reimagine everyday lives
while generating sustainable returns over the long-term. This builds on Kinnevik’s heritage of
having been part of laying the groundwork for today’s thriving Nordic tech scene four decades
ago. One of our strategic decisions since 2018 is our recommitment to the Nordic venture and
growth ecosystem, and with several breakout businesses in our Nordic portfolio we can see the
strategy paying off. We continue to see an overall strong operational development in our portfo-
lio companies, and while we maintain our pace of investment, we note that European valuations
are catching up to the higher levels observed in the US.
K
innevik's Q2 Results when we decided to back Babylon Health, a leading
Kinnevik’s Net Asset Value amoun- The Nordics is a re- digital-first value-based care operator. At the begin-
ted to SEK 76.2bn, or SEK 274 per gion where we see ning of June this year, Babylon agreed to merge
share at the end of the second and enjoy a high with the SPAC Alkuri Global Acquisition Corp.,
quarter. This was up by SEK 12.6bn level of innova- whereby Babylon will become a publicly traded
or 11 percent compared to the end tion and creativity company on Nasdaq. We will invest USD 5m as
of the first quarter, including the increase in value continously giving part of the USD 230m private placement in con-
on the Zalando investment up until it was distri- birth to new and nection with the merger, bringing our ownership
buted. This increase was driven by revaluations exciting busines- to 13 percent when the transaction is finalised later
in our private portfolio, primarily of Babylon, Pleo ses. this year. As a result of the transaction, the value of
and Budbee, and was impacted by negative share our investment in Babylon has increased by almost
price development in Teladoc. SEK 2.0bn. Babylon’s strategic focus is on its US
The Zalando shares we distributed to our sha- expansion, a key market for the company. You
reholders in the quarter are successively being will find an interview with the founder of Babylon,
made tradeable in Frankfurt up until 14 July, and Ali Parsa, on page 11, outlining his vision for the
represented SEK 54.1bn in value handed over to company going forward.
our shareholders, or more than 40 percent of our This quarter, we have invested in Parsley Health –
Net Asset Value at the time. a holistic virtual-first consumer subscription service
Our financial position remained strong with a that offers personalised doctor-led care and sup-
net cash position of SEK 4.3bn. port for chronic conditions for women, a notoriously
underinvested area of healthcare. Their service
Towards More Data-Driven Healthcare includes doctor and health coach visits, unlimited
The pandemic has shed light on glaring short- messaging, access to biomarker testing and pres-
comings in healthcare systems across the globe. criptions. Learn more about Parsley Health in the
It has also accelerated the shift towards a tech- interview with founder Dr Robin Berzin on page 13.
enabled, data-driven healthcare system, in which With our healthcare portfolio already including
emerging companies drive a transformation from specialised virtual healthcare through Joint Aca-
a “one size fits all”-approach to preventative and demy and Livongo within Teladoc, we believe that
personalized virtual care pathways, and better the current growth of telemedicine will continue to
alignment of incentives through value-based care create winners in specific verticals that tailor their
and outcomes-based pricing. We expected that brand, service, and data to clear niches, and will
process to take ten years, now it will take only two. transfer the longitudinal doctor-patient relationship
In the last five years we have built a portfolio into a virtual environment that has historically been
of companies that are ideally placed to drive and disjointed and transactional.
benefit from many of these trends, while also pro-
viding better health outcomes. As a result, we have Impressive Development at Home
seen close to SEK 25bn of value creation from our As a global growth investor with a Nordic home
healthcare portfolio during this period. since our family-owned business was founded in
Our first investment in healthcare was in 2016, 1936, we are the perfect partner for Nordic foun-
3
Interim Report Q2 2021
CHIEF EXECUTIVE’S REVIEW
11%
ders who want to scale their businesses across towards net zero greenhouse gas emissions from
Europe and globally. The region is integral to our Kinnevik’s own operations and business travel,
culture and heritage, and is where our brand and and towards reducing greenhouse gas emission
network are the strongest. It is also a region where intensity in our portfolio by 50 percent by 2030
we see and enjoy a high level of innovation and compared to 2020.
creativity continuously giving birth to new and In the quarter, Hagainitiativet, a business net-
exciting businesses. work that strives to reduce the climate impact in
Since 2018, we have reintroduced ourselves in the business sector, listed Kinnevik as one of just
the Nordic markets with ten new investments. We thirty-eight large listed Swedish companies that
have continued to build upon our core strengths have set clear goals in this regard – awarding us
– spotting new and complex technological and a green light. While it is encouraging that we and
behavioural trends early on and backing the foun- seventeen other companies have joined that list in
ders, teams, and businesses that create, drive and the last year, that number needs to go up. It is not
leverage these trends. only the right path to take for society at large - sus-
The cohort of Nordic companies we invested in tainability is fundamentally about business growth,
during 2018 – Pleo, Budbee, Karma and Oda – is and as such is a financial imperative. We continue
showing sector-leading IRRs of almost 80 percent our work in supporting our portfolio companies
after three years, even when taking account of in this process.
the substantial capital we have invested in follow- I am also immensely proud of our progress in
ons since then. This is testament to our successful Kinnevik's Net Asset diversity and inclusion. We are committed to our
strategy in the Nordics, and our ability to replicate Value increased by gender balance target of 40/60 in all teams, and
successes across different industries. 11% during Q2 2021 women now make up 38 percent of our investment
Last quarter, Oda raised additional capital from team, up from 18 percent only a year ago. Further,
us, Prosus and Softbank to finance the company’s we have recruited eight new female non-executive
international expansion drawing on the proven, directors to the boards of our portfolio companies
profitable and scalable model that Oda has so far in 2021, and 19 new female non-executive
employed in Norway. This quarter, Pleo raised directors over the last twelve months.
USD 150m to support its growing customer base
of over 17,000 companies and the development Concluding Remarks
of new features for its expense management plat- While we believe the technological and behaviou-
form. Both Oda and Pleo are founded and led by ral shift to digital that we have witnessed since the
visionary leaders with a relentless focus on building outbreak of the pandemic is, to a large extent, a
for the long-term, and we are proud to be part of permanent one, as we head into summer I hope
their journey. that we will all be able to gradually return to a more
I am equally excited about the most recent normal, social and enjoyable life.
investment in our Nordic portfolio – Lunar. With I would like to thank all of our shareholders and
their banking license in the Nordics, Lunar is the team members at Kinnevik and our investees for
only challenger bank competing to replace, rather supporting us and working hard through these
than complement, the incumbents. Our strong rapidly changing times, and I wish you all a great
Nordic knowledge, relationships and portfolio, Women now make summer.
give us a unique opportunity to take a long-term up 38 percent of
perspective and partner with Lunar as it embarks our investment Georgi Ganev,
on a challenger journey that we have already taken team, up from 18 CEO of Kinnevik
in a wide variety of industries. percent only a year
Another new addition to our Nordic portfolio ago.
in the quarter is Superb, the first all-in-one guest
experience management platform for restaurants,
a segment that has previously been underserved.
Investing For the Future
We stand firm in our conviction that our efforts in
sustainability, diversity and inclusion strengthen
us as an investor. In May last year, we set climate
targets in line with the Paris Agreement and the
1.5˚C pathway. This means that we are working
4
Interim Report Q2 2021
KINNEVIK IN SUMMARY
Kinnevik's ambition is to be Europe’s leading listed growth investor and we back
the best digital companies to reimagine everyday and deliver significant returns.
We understand complex and fast-changing consumer behaviours, and have a strong
and expanding portfolio in healthtech, consumer services, foodtech and fintech. As a
long-term investor, we strongly believe that investing in sustainable business models and
diverse teams will bring the greatest returns for shareholders. We back our companies
at every stage of their journey and invest in Europe, with a focus on the Nordics, and in
the US. 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.
Five Year Annualised IRR per Sector Composition of Portfolio Value
Consumer Services 29%
Consumer Services
Financial Services 18% TMT
Healthcare Services 116%
30% 24%
TMT 19%
Emerging Markets (4)%
2%
Emerging Markets
Total Weighted Average 22%
Financial Services
Annualised Total Shareholder Return 5%
138% 34% 23% 18% 39%
Healthcare Services
One Year Five Years Ten Years Thirty Years
NAV Development (SEKbn)
(Excluding Zalando)
76.2
6.0% Net Cash to
Portfolio Value
62.6 62.3
71.4
n Investments 53.9
Investment Activity
(SEKm) n Divestments
n Net Investments
1,740
1,490
734 691
(43)
(250)
H1 2020 Q2 2021 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21
Note: The annualised total shareholder return includes reinvested dividends.
5
Interim Report Q2 2021
NET ASSET VALUE
Investment (SEKm) Kinnevik's Net Invested Fair Value Fair Value Fair Value Fair Value Total Return
Ownership Capital Q2 2021 Q1 2021 Q4 2020 Q2 2020 2021 YTD
Budbee 28% 337 1 259 948 769 348 64%
Common 11% 226 239 245 173 - 11%
Global Fashion Group 37% 6 920 10 228 9 067 7 688 2 340 33%
Omio 5% 562 468 462 438 466 6%
TravelPerk 14% 453 791 799 380 463 78%
HungryPanda 11% 311 339 343 300 - 13%
Karma 20% 68 43 43 43 43 -
Mathem 37% 1 220 1 671 1 490 1 315 1 132 14%
Oda 21% 711 1 553 1 610 1 087 734 39%
Simple Feast 11% 113 110 113 96 - -3%
Superb 19% 81 85 - - - 5%
Vivino 11% 586 632 641 - - 8%
Other - - - - - 256 -
Total Consumer Services 11 588 17 418 15 761 12 290 5 782 31%
ADS - - - - 168 - 16%
Betterment 15% 1 065 1 090 1 008 970 1 116 12%
Bread - - - - - 377 -
Monese 26% 481 514 427 429 413 11%
Pleo 13% 379 1 913 434 407 342 202%
Raisin DS 2% 273 261 262 247 257 1%
Total Financial Services 2 198 3 778 2 131 2 221 2 505 64%
Babylon 13% 847 4 699 2 680 2 525 2 515 83%
Cedar 9% 270 2 385 2 431 572 632 317%
Cityblock 8% 634 2 076 2 116 841 233 90%
Joint Academy 19% 131 138 131 131 - 5%
Teladoc / Livongo 5% 197 10 653 11 868 12 302 8 864 -13%
VillageMD 9% 986 7 858 7 280 4 842 2 363 62%
Other - 265 261 65 62 70 3%
Total Healthcare Services 3 331 28 070 26 571 21 275 14 677 29%
Total Emerging Markets 2 109 1 131 1 323 1 835 2 268 -37%
Other - - 196 322 140 - 40%
Total Growth Portfolio 19 225 50 593 46 108 37 761 25 232 29%
whereof Unlisted Assets 12 108 29 516 24 851 17 462 13 772 54%
Note: Other Healthcare Services includes Town Hall Ventures II and Parsley Health.
Total return includes investments and divestments.
Net invested capital in Teladoc corresponds to aggregate investments into Livongo net of cash proceeds received in connection with the merger that closed in October 2020.
6
Interim Report Q2 2021
NET ASSET VALUE (CONT'D)
Investment (SEKm) Kinnevik's Fair Value Fair Value Fair Value Fair Value Total Return
Ownership Q2 2021 Q1 2021 Q4 2020 Q2 2020 2021 YTD
Tele2 27% 21 923 22 073 20 450 23 208 13%
Zalando - - 46 310 49 346 35 641 10%
Total Portfolio Value 72 516 114 490 107 556 84 081 17%
Gross Cash - 7 329 6 902 7 800 9 624 -
Gross Debt - - 3 009 - 3 007 - 2 983 - 4102 -
Net Cash / (Debt) - 4 320 3 895 4 817 5 522 -
Other Net Assets / (Liabilities) - - 658 - 633 - 702 - 26 -
Total Net Asset Value - 76 178 117 752 111 671 89 577 17%
Net Asset Value Per Share, SEK - 274.05 423.91 402.02 322.50 14%
Closing Price, Class B Share, SEK - 344.80 425.15 417.35 245.00 27%
Note: Total return includes investments and divestments.
Other Net Assets / (Liabilities) include the reservation from Q4 2020 regarding a potential capital gains tax liability of SEK 0.8bn relating to the merger between Teladoc and Livongo, based on the rules for accoun-
ting for uncertain tax positions in IFRIC 23.
Value Development Composition of Portfolio Value
SEKbn Per quarter-end
50.6 Tele2 Unlisted Growth Tele2 2016-21 Investments
30% 41% 30% 54%
19.2
29% 16%
Net Invested Growth Portfolio Listed Growth Pre 2016 Investments
Cash Value
ASSESSMENTS OF FAIR VALUE OF UNLISTED INVESTMENTS
In assessing the fair value of our unlisted investments, we apply IFRS 13 and the International Private
Equity and Venture Capital Valuation Guidelines, whereunder we make an assessment to establish the
valuation methods and points of reference that are most suitable and relevant in determining the fair
value of each of our unlisted investments. Read more in Note 4 on pages 23-25.
MORE
7
Interim Report Q2 2021
CONSUMER SERVICES
Sweden’s leading independent online Revenues LTM (SEKm) Number of Completed Deliveries
LTM (m)
grocery retailer, reaching more than half of 2 694 2.1
2.4
2 319 1.8
all Swedish households 1 825
2 024
1.3
1.5
1 606
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Fair Value SEK 1.7bn
Kinnevik Stake 37%
The leading online grocery store in Norway, Revenues LTM (NOKm)
2 315
Number of Completed Deliveries
LTM (m) 1.8
with the ambition to make grocery shopping 1 978 1.6
1 658
an effortless activity 1 206
1 477
1.0
1.2 1.3
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Fair Value SEK 1.6bn
Kinnevik Stake 21%
The world’s leading Marketplace platform Number of Meals Saved ('000)
wine app that connects consumers
542
with local restaurants and
552
grocery stores that have 498
surplus food 360
415
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q2 2021
Fair Value SEK 632m Fair Value SEK 43m
Kinnevik Stake 11% Kinnevik Stake 20%
A leading plant-based A global leader in online The first all-in-one Guest
meal kit provider Asian food delivery Experience Management
platform for restaurants
Fair Value SEK 110m Fair Value SEK 339m Fair Value SEK 85m
Kinnevik Stake 11% Kinnevik Stake 11% Kinnevik Stake 19%
Note: Number of completed deliveries LTM for Oda and Mathem refers to the number of orders delivered to customers in the last twelve months. Number of meals saved for Karma refers to the number of meals
bought through Karma's platform during the period.
8
Interim Report Q2 2021
CONSUMER SERVICES
Residential brand and Number of Units Signed ('000)
tech-enabled managed 21.5
rental housing market-
20.0
place in the US
18.7
17.6
Q3 2020
Q4 2020
Q1 2021
Q2 2021
Fair Value SEK 239m
Kinnevik Stake 11%
The leading fashion and Net Merchandise Value LTM Adjusted EBITDA Margin LTM Active Customers (m)
(EURbn) 2.0%
lifestyle retail destination 16.7
1.9 2.0 2.0 1.2% 16.3
1.8 1.8
in growth markets
(0.2)% 15.4
14.6
(1.6)%
13.3
(2.5)%
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Fair Value SEK 10.2bn
Kinnevik Stake 37%
The largest multi-modal The leading solution In April, TravelPerk raised flights compared to the ba-
travel platform in Europe for businesses to book USD 160m in equity and debt in seline before COVID-19. In
operating in 15 countries corporate travel online a founding round led by Grey- 2020, TravelPerk doubled its
hound Capital where Kinnevik customer base and now has
participated. 3,000+ businesses using the
The capital will be used to platform.
accelerate global growth with In July, TravelPerk announ-
the company reporting that US ced the acquisition of Click
Fair Value SEK 468m Fair Value SEK 791m domestic flights has shown a Travel, the market leader in
Kinnevik Stake 5% Kinnevik Stake 14% 70-75% recovery in domestic UK domestic business travel.
Customer centric last-mile logistics platform Number of New Merchants 345
specialised for e-Commerce businesses
189 203
121 114
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q2 2021
Fair Value SEK 1.3bn
Kinnevik Stake 28%
Note: The definitions of the KPIs for GFG is available on the company's website. Number of units signed refers to the number of rooms that Common has signed up to manage, many of these are under develop-
ment. Number of new merchants for Budbee refers to the new live merchants/webshops during the quarter.
9
Interim Report Q2 2021
FINANCIAL SERVICES
US based smart money manager offering Assets Under Management (USDbn) Customers (‘000)
30.7
investing and retirement solutions 25.8
28.6
632
656
20.8 22.3
577
552
527
May 2021
Q1 2020
Q2 2020
Q3 2020
Q4 2020
May 2021
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Fair Value SEK 1.1bn
Kinnevik Stake 15%
The first fully mobile Signed-Up Customers (m) In June Deposit Solutions Open Banking platform
current account in the UK announced the completion allowing banks to offer
3.4 3.5 of the merger with Raisin to third party deposit pro-
2.9
3.1 form Raisin DS, a pioneer in ducts through customers’
2.6 the savings and investment existing accounts
market, servicing banks and
consumers on both sides of
Q1 2020
Q2 2020
Q3 2020
Q4 2020
May 2021
Fair Value SEK 514m the Atlantic. Fair Value SEK 261m
Kinnevik Stake 26% Kinnevik Stake 2%
Offers smart payment cards to employees
while making sure the company remains in
full control of spending
Fair Value SEK 1.9bn
Kinnevik Stake 13%
In July, Kinnevik announced growing 17,000+ customer
that it has invested USD 27m base, that has grown by over
in Pleo’s USD 150m funding 125 percent during the pan-
round co-led by Bain Capital demic, and the development
Ventures and Thrive Capital. of new spend management
Kinnevik participated above features on its platform.
its pro rata share. Kinnevik first partnered with
The funds raised will be Pleo back in their Series A in
used to support the company’s 2018.
Note: Betterment’s AUM is as of the period end, and customers are those with an AUM balance greater than zero at the end of the period. Betterment has updated its methodology for calculating number of custo-
mers and thus, some of the historical numbers have been restated. Monese’s Signed-up Customers are those that have started the registration process by providing some form of identification.
10Interim Report Q2 2021
HEALTHCARE SERVICES
Digital healthcare ser- Global registrations (m)
vice company combining
8.1
mobile tech and artificial 7.3
intelligence with medical 6.6
5.7
expertise
4.9
Q2 2021
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Fair Value SEK 4.7bn
Kinnevik Stake 13%
"In one year, we have Ali, congratulations on the markets in Europe where only is what we are going to do with
gone from zero lives announcement of the SPAC a very small part of spend is healthcare. Our perspective
merger with Alkuri raising commercial, and many deci- on patient care is such that if
in the US to over four USD 575m in proceeds – how sions around the healthcare a patient gets sick, we don’t
million lives for which do you plan to invest that capi- spend are political. think of it as an opportunity
Babylon is the first tal? And why did you choose for revenue but rather a failure
digital choice and we this route to go public? You are expanding the plat- that we did not collect the in-
have almost 100,000 We will use the capital to con- form in the US to value-based formation quickly enough to
tinue our chosen path. We will care, tell us more? spot the trend.
members for whom
keep on building and growing In the US, and frankly many Early discovery is very im-
we have full risk." the business. other markets, the healthcare portant in healthcare. Once we
As for the SPAC route, we industry has historically been manage to achieve that there
found that it is an incredibly very focused on prescribing are no surprises, how much
efficient route to go public for more procedures, surgeries better would that be?
the company and generally a and medication given the vo-
good option for fast-growing lume based incentive struc- What are the key milestones
companies like Babylon. ture. The right way, however, for Babylon’s next three to five
We are excited to partner is to pay the care provider to years?
with Alkuri and so many strong keep people healthy, and not In one year, we have gone from
investors who are participating to prescribe. zero lives in the US to over four
in the SPAC to support us on What is unique about Baby- million lives for which Babylon
our journey forward. lon is that we built the company is the first digital choice and we
based on the understanding have almost 100,000 members
How important is the US ex- that what commonly is called for whom we have full risk. That
pansion for driving growth? healthcare is not healthcare, is very rapid growth.
It is incredibly important; I am it is fundamentally sick care. Our job in the US is to show
moving to the US myself and The system waits for people people that it is possible for a
the entire management team to get sick and then has them European company to break
of Babylon is US based. seek care themselves, a very into the US and win, and that
I must admit it took me reactive approach. a digital first company can
some time to understand the We used to do that to our deliver value-based care effe-
power and resulting value cre- cars 20 years ago, we would citvely. This would change the
ation potential of a USD 4 trilli- drive until it broke down. No- perception of Babylon, and I
on US healthcare market. More wadays there are so many sen- think my job is to deliver this to
importantly, a large part of the sors in a car that you detect a our clients, partners, employ-
Interview with Ali Parsa, US healthcare market is dis- problem immediately, and fix ees and shareholders.
Co-founder and CEO of cretionary spend, compared it way earlier such that the car
Babylon Health to the differently structured does not break down. And that
Note: Global registrations for Babylon refers to the total number of users globally registered with a Babylon service.
11Interim Report Q2 2021
HEALTHCARE SERVICES
Empowering people to Revenue (USDm)
454
Adjusted EBITDA Margin US Paid Membership (m)
live their healthiest lives by 383
51.8
13% 51.5 51.5 51.5
transformingthe healthcare 289
11%
14% 12%
241
experience
181
43.0
6%
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Fair Value SEK 10.7bn
Kinnevik Stake 5%
Provides a smarter way In May, Cedar announced Value-based healthcare
for hospitals, health that it is acquiring healthtech provider focused on under-
systems and medical company Ooda Health. This served urban populations
groups to manage the creates the only complete with complex care needs
patient payment eco- solution to address the full
system set of challenges consumers
face when paying for health-
Fair Value SEK 2.4bn care. Fair Value SEK 2.1bn
Kinnevik Stake 9% Kinnevik Stake 8%
A leading US based provider of primary Managed Lives Active markets
May 2021 May 2021
care and a pioneer in the delivery of
value-based care
Fair Value SEK
Kinnevik Stake
7.9bn
9% 503 13 k
Swedish digital health company that Enrolled patients Active patients per month
June 2021 June 2021
connects patients with physical therapists to
deliver an online evidence-based treatment
for chronic joint pain
Fair Value SEK
Kinnevik Stake
138m
19% 53 k 20
Note: The definitions of Teladoc Health’s KPIs are available on the company’s website. Managed lives for VillageMD refer to the number of patients attributed to a VillageMD primary care doctor
k
12Interim Report Q2 2021
HEALTHCARE SERVICES
America’s largest holistic
virtual-first consumer sub-
scription service, caring
for and supporting chronic
conditions for women
"By connecting the What is going wrong for wo- unnecessary or ineffective. Th- Thirdly, a comprehensive
dots we can address men with chronic conditions rough properly treating her whole-body approach. We
in today’s healthcare system? thyroid, and helping her make don’t separate the body un-
more than one co- Chronic conditions are formed, behavioural changes, Parsley’s necessarily into organ systems.
morbidity at a time endured and suffered over a li- data shows that she can re- If what is happening in the
which saves time and fetime. They are usually a result verse five years of symptoms gut is impacting the brain, we
money." of diet and lifestyle, and can be in less than one year, giving need to look at both of them
improved or reversed through her more happiness, energy, At Parsley, by connecting the
Interview with Dr Robin Berzin, changing these patterns. But productivity and longevity. The dots we can address more than
Founder and CEO of Parsley our healthcare system is very ROI is huge - for her and for one comorbidity at one time,
Health
transactional, episodic and our healthcare system. which saves time and money
reactive. Too often doctors are for all stakeholders.
Tell us about yourself and why
waiting for the wheels to fall off What is unique about Parsley’s
you started Parsley Health?
the wagon before addressing holistic care model? What is your vision for the next
I’m a medical doctor trained
these problems. This is parti- Our precision health care mo- ten years?
at Columbia University and
cularly true for women, who del is unique in three key ways: Our mission is to be the top ho-
Mount Sinai Hospital, and a
account for 70-80 percent of Firstly, personalisation. We listic medical platform for wo-
multi-company healthcare
chronic conditions under the personalise care by assessing men with chronic illnesses. We
entrepreneur.
age of 65 in US. a much wider and deeper data are focused on women today
In my medical training, I saw
A common patient we mig- set than a regular doctor. We because we know we move
how our primary care system
ht see is a woman in her forties, intake three times the amount the needle for them when it
was failing people with chronic
high blood pressure, high cho- of data than a regular doctor comes to positive health. Over
illnesses. Too often our system
lesterol, metabolic syndrome, does, and do much more time we will expand beyond
had become a revolving door
depression, and fatigue. She proactive diagnostic testing. this population to the many
for prescription drugs and spe-
is often a busy mom who Our intake and testing then related conditions and po-
cialist referrals, perpetuating
has been sick for 2-5 years gives us a data set to opera- pulations where we know our
the top chronic illnesses of our
and struggles to understand tionalise a customized care methodology can really help,
time instead of resolving them.
what to do. At Parsley Health, plan, instead of prescribing a including men's health, older
Chronic illnesses drive 90 per-
through more advanced tes- one-size fits all approach. populations, and paediatrics.
cent of healthcare costs, affect
ting and analysis, we see what Secondly, longitudinal rela- Additionally, we plan to ser-
6 in 10 Americans, and materi-
other doctors have missed. We tionships. Chronic conditions ve not just D2C but ultimately
ally deplete people’s quality of
may find she’s suffering from a can’t be fixed in a quick once- offer B2B2C products as well.
life in the US and worldwide. I
thyroid condition, which 1 in 5 a-year visit. We engage with We are a category defining
founded Parsley Health out of
women will be diagnosed with patients throughout the year company, defining the mar-
my own experience. I saw how
in their lifetime. Before Parsley, and across multiple years as ket for longitudinal, virtual-first
poorly patients were managed
she may have been on a lot of their partner in health. We offer care for chronic conditions.
and the opportunity to bring
medications to treat her vari- health coaching and nutrition There are a lot of more transac-
a more holistic paradigm of
ous symptoms, but because plans that support behavioural tional telehealth services, but
health that could reverse ch-
her conditions were a result of change that drive better health or none that we know of, that
ronic illness by treating it from
her underlying thyroid issue, outcomes and ongoing sup- take care of women longitudi-
the root cause.
many of her medications were port from their medical team. nally and holistically.
13Interim Report Q2 2021
TMT
Enables mobile and Revenue (SEKbn) Adjusted EBITDAaL Margin Revenue Generating Units
Sweden and the Baltics (m)
fixed connectivity, 6.7 6.7 6.6 6.9 6.6 38%
9.4
telephony, data, TV 9.3 9.3 9.3
and streaming 33%
34% 34% 34%
9.2
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Fair Value SEK 21.9bn
Kinnevik Stake 27%
End of April Com Hem’s 1.7 million Swedish households joined from the first climate neutral operator in the Nordics and the
the Tele2 family as two of Sweden’s strongest brands, Tele2 and Baltics. The result is a simplified customer experience, better
Com Hem, combined into one. Tele2 customers now have ac- customer service and more benefits. Tele2's Q2 numbers will
cess to nationwide mobile connectivity, upgraded broadband be released July 14.
and Sweden’s largest entertainment offering – all available
Note: The definitions of Tele2’s KPIs are available on the company's website.
14Interim Report Q2 2021
IMPORTANT CLIMATE PROGRESS
IN KINNEVIK’S PORTFOLIO
Target-setting and climate initiatives in two of our sectors
Tele2 sets Science-Based Targets and Tele2’s operations (scopes 1 and 2) are consistent with
push climate efforts further reductions required to keep warming to 1.5°C, the most
ambitious goal of the Paris Agreement. The target for the
In 2020, Tele2 became the first telco in the Nordics and the
emissions from Tele2’s value chain (scope 3) meet the SBTi’s
Baltics to be climate neutral in its own operations. Now,
criteria for ambitious value chain goals, meaning they are in
Tele2 has pushed its climate efforts further by launching
line with current best practice.
industry-leading climate goals approved by the Science-
Based Target initiative (“SBTi”). In line with Tele2’s firm am- Smaller SIM cards
bition to lead in sustainability, the goals set clear targets for Another focus area in Tele2’s sustainability strategy is ad-
Tele2’s climate efforts both within its own operations and vancing circular economy to combat climate change. To
for its value chain. maximize resource utilization and minimize waste, Tele2
strives to reduce, reuse and recycle – in that priority order.
Tele2’s official SBTi approved targets are:
In line with this, Tele2 Sweden is now reducing the plastic
• Tele2 commits to reduce absolute scope 1 and 2 GHG waste originating from the millions of SIM card holders the
emissions 90% by 2025 and 100% by 2029 from a 2019 company sends out each year.
base year. Traditional SIM cards comes in holders in credit card for-
mat. By decreasing the holder size by half, each card requi-
• Tele2 commits to reduce scope 3 GHG emissions 60%
res half as much raw material and weight 55 percent less. As
per subscription by 2029 from a 2019 base year.
such, Tele2 Sweden does not only save about 6 tons of plastic
The targets covering greenhouse gas emissions from each year, but also decrease CO2 emissions with 35 tons.
Fossil-free deliveries by Mathem in 2021 make an initial improvement in this area.
By introducing fossil-free deliveries, Mathem now wants
Sustainability has been a part of Mathem's DNA since the
to further contribute to the environmental gains that e-
beginning. The company has now announced that its trans-
commerce of food with home delivery provides.
port operations will be fossil-free as early as 2021 by com-
The decision to now completely switch to fossil-free HVO
pletely switching to fossil-free HVO fuel for all land-based
fuel means that Mathem's direct emissions in the transport
delivery vehicles.
business will be reduced by up to 90 percent compared to
Online grocery shopping is, according to a report by the
fossil diesel. At the same time, the vehicle fleet will soon
Swedish Road and Transport Research Institute among oth-
be renewed with over 200 new and more environmentally
ers, more energy efficient than shopping in physical stores,
friendly trucks. The transport operations will thus be fossil-
as the combined delivery routes for e-commerce with home
free according to the definition from the government initia-
delivery reduce individual driving to the physical stores.
tive Fossilfritt Sverige. The transition will take place gradu-
Still the transport business generates the largest share
ally, but is expected to be completed already in 2021.
of direct emissions for Mathem and therefore it is natural to
15Interim Report Q2 2021
FINANCIAL REVIEW
Capital Re-Allocation Activity Capital Allocation Framework
Over 2019-23, Kinnevik is aiming to systematically in-
Investee (SEKm) Q2 2021 H1 2021 vest its capital under a capital allocation framework
Babylon 43 43 which entails:
Cityblock - 255 • Investing one-third of our capital into first round in-
Common - 42 vestments, and two-thirds of our capital into follow-on
Mathem 149 149
investments in the high-performing companies of our
growth portfolio, on average per year.
Monese 34 35
• Adding one or two international, later-stage compa-
Oda - 33
nies, and one or two Nordic earlier-stage companies
Parsley Health 191 191 on average per year.
Pleo 227 227
• Distributing our capital evenly across our focus sectors.
Raisin DS - 10
• Aiming to accrete 15-25 percent ownership stakes.
Simple Feast 8 17
Superb 81 81 • Targeting a portfolio of 30 companies, with a more
even distribution of value across investments and
TravelPerk - 66
sectors, as well as levels of risk and stages of maturity.
Vivino - 586
Other 1 5
Investments 734 1 740
ADS - -196
Zalando -24 -24
Other -19 -30
Divestments -43 -250
Net Investments / (Divestments) 691 1 490
During the second quarter, we invested Health and the restaurant SaaS platform between SEK 2.3-4.6bn with a slight
a total of SEK 734m. Superb. overallocation into new investments re-
SEK 462m was deployed into our Since the start of 2019, Kinnevik has lative to our framework, adding 4-6 new
existing businesses. Our largest follow- invested SEK 8.6bn into our Growth companies to our Growth Portfolio.
on investments in the quarter were Portfolio. Some 42 percent of this capital
SEK 227m into Pleo and SEK 149m into has been invested into 10 new compa-
Mathem. nies and 58 percent has been invested
We added two new companies to into follow-on investments - fairly in line
the portfolio during the quarter, inves- with Kinnevik's capital allocation fram-
ting SEK 272m in total into the holistic ework.
virtual-first healthcare service Parsley In 2021, Kinnevik is looking to invest
CAPITAL MARKETS DAY 2021
Kinnevik hosted a digital Capital Markets Day on 24 February 2021. It included an update on
Kinnevik’s strategy, financial position and capital allocation framework. Read more and rewatch the
broadcast on kinnevik.com.
MORE
16Interim Report Q2 2021
Capital Structure Financial Targets Events After the Quarter
As at 30 June 2021, Kinnevik had a net Attractive Returns In July we invested USD 49m into Lu-
cash position of SEK 4.3bn, correspon- Kinnevik’s objective is to generate a long nar, the leading Nordic challenger bank,
ding to 6% of portfolio value. This net term total return to our shareholders in alongisde our former Zalando partners
cash position was mainly made up of excess of our cost of capital. We aim to Heartland.
SEK 6.5bn in cash and short-term in- deliver an annual total shareholder return
vestments and SEK 0.6bn pertaining to of 12-15% over the business cycle.
the incoming dividend from Tele2, less
SEK 1.5bn in senior unsecured bonds with Low Leverage
a remaining tenor exceeding 12 months Given the nature of Kinnevik’s invest-
and SEK 1.4bn senior unsecured bonds ments, our goal is to carry low leverage,
with a remaining tenor within 12 months. not exceeding 10% of portfolio value.
Shareholder Remuneration Policy
Kinnevik generates shareholder returns
primarily through capital appreciation,
and will seek to return excess capital
generated by its investments to share-
holders through extra dividends.
17Interim Report Q2 2021
TOTAL COMPREHENSIVE INCOME
Condensed Consolidated Income Statement and report concerning Total Comprehensive Income
SEKm Note Q2 Q2 H1 H1 FY
2021 2020 2021 2020 2020
Change in fair value of financial assets 4 11 450 24 273 17 586 15 977 39 850
Dividends received 5 1 126 516 1 126 516 1 689
Administration costs -76 -140 -145 -180 -404
Other operating income 1 4 4 6 12
Other operating costs -3 0 -3 0 -4
Operating profit/loss 12 498 24 653 18 568 16 319 41 143
Financial net -9 -10 -7 -48 -37
Profit/loss after financial net 12 489 24 643 18 561 16 271 41 106
Tax 0 0 0 0 -832
Net profit/loss for the period 12 489 24 643 18 561 16 271 40 274
Total comprehensive income for the period 12 489 24 643 18 561 16 271 40 274
Net profit/loss per share before dilution 44.95 89.09 66.80 58.82 145.29
Net profit/loss per share after dilution 44.95 89.03 66.80 58.78 145.22
Outstanding shares at the end of the period 277 967 964 277 754 737 277 967 964 277 754 737 277 775 037
Average number of shares before dilution 277 871 501 277 179 606 277 839 346 276 604 474 277 189 756
Average number of shares after dilution 277 871 501 277 233 058 277 839 346 276 806 068 277 337 897
Consolidated Earnings for the Second Quarter
The change in fair value of financial assets including dividends received amounted to a profit of SEK 12,576m (24,789) for the second
quarter of which a profit of SEK 8,753m (23,525) was related to listed holdings and a profit of SEK 3,823m (1,264) was related to
unlisted holdings. See note 4 and 5 for further details.
Of the SEK 76m (140) in administration costs incurred during the second quarter, SEK 20m (92) pertained to Kinnevik’s outstanding
long-term incentive programs. The lower cost this year is attributable to the launch of the long term incentive program 2020 in the
second quarter 2020 while there has not been any launch of a new program for 2021 yet.
Consolidated Earnings for the First Six Months of the Year
The change in fair value of financial assets including dividends received amounted to a profit of SEK 18,712m (16,493) for the first
six months of the year of which a profit of SEK 8,312m (16,123) was related to listed holdings and a profit of SEK 10,399m (370) was
related to unlisted holdings. See note 4 och 5 for further details.
18Interim Report Q2 2021
CASH FLOW STATEMENT
Condensed Consolidated Cash Flow Statement
SEKm Note Q2 Q2 H1 H1 FY
2021 2020 2021 2020 2020
Dividends received 5 563 516 563 516 1 689
Cash flow from operations -51 -43 -154 -149 -311
Interest, received 0 0 0 0 1
Interest, paid -16 -13 -44 -41 -52
Cash flow from operations 496 460 365 326 1 327
Investments in financial assets -805 -383 -1 780 -712 -2 170
Sale of shares and other securities 43 6 730 250 6 731 8 383
Cash flow from investing activities -762 6 347 -1 530 6 019 6 213
Repayment of loan - -1 093 - -2 234 -3 410
Borrowing - - - 1 500 1 500
Sale of treasury shares 88 - 88 - -
Dividend paid to equity holders of the Parent company -44 - -44 - -1 928
Cash flow from financing activities 44 -1 093 44 -734 -3 838
Cash flow for the period -222 5 714 -1 121 5 611 3 702
Cash and short term investments, opening balance 6 690 3 784 7 589 3 887 3 887
Cash and short term investments, closing balance 6 468 9 498 6 468 9 498 7 589
SUPPLEMENTARY CASH FLOW INFORMATION
Investments in financial assets 4 -734 -400 -1 740 -803 -2 329
Investments not paid 42 17 43 91 147
Prior period investments, paid in current period -113 0 -83 0 0
Exchange differences on investments not paid - - - - 12
Cash flow from investments in financial assets -805 -383 -1 780 -712 -2 170
Sale of shares and other securities 43 6 927 250 6 928 8 871
Divestments with no cash flow 0 -197 0 -197 -464
Exchange differences on divestments not paid 0 0 0 0 -24
Cash flow from sale of shares and other securities 43 6 730 250 6 731 8 383
19Interim Report Q2 2021
BALANCE SHEET
Condensed Consolidated Balance Sheet
SEK m Note 30 Jun 30 Jun 31 Dec
2021 2020 2020
ASSETS
Fixed assets
Financial assets accounted at fair value through profit and loss 4 72 516 84 081 107 556
Tangible fixed assets 47 50 50
Right of use asset 10 10 9
Other fixed assets 216 26 214
Total fixed assets 72 789 84 167 107 829
Other current assets 891 278 329
Short term investments 3 884 2 762 3 878
Cash and cash equivalents 2 584 6 736 3 711
TOTAL ASSETS 80 148 93 943 115 747
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity attributable to equityholders of the Parent Company 76 178 89 577 111 671
Interest bearing liabilities, long term 1 523 2 942 2 941
Interest bearing liabilities, short term 1 400 1 160 0
Non interest bearing liabilities 1 047 264 1 135
TOTAL EQUITY AND LIABILITIES 80 148 93 943 115 747
Key Ratios 30 Jun 30 Jun 31 Dec
Ratio Note 2021 2020 2020
Debt/equity ratio 0.04 0.05 0.03
Equity ratio 95% 95% 96%
Net cash/Net debt, for the Group, including net loans to investee companies 6 4 450 6 034 5 283
Net cash/Net debt, for the Group, excluding net loans to investee companies 6 4 320 5 522 4 817
20Interim Report Q2 2021
CHANGES IN EQUITY
Condensed Report of Changes in Equity for the Group
SEK m H1 H1 FY
2021 2020 2020
Opening balance 111 671 73 295 73 295
Profit/loss for the period 18 561 16 271 40 274
Total comprehensive income for the period 18 561 16 271 40 274
Transactions with shareholders
Effect of employee share saving programme 18 11 30
Sale of own shares 88 - -
Dividend in kind 1) -54 116 - -
Cash dividend 2) -44 - -1 928
Closing balance for the period 76 178 89 577 111 671
1) In accordance with the resolution at the AGM on April 29, 2021, the distribution of the Zalando shares ,amounting to SEK 54,116m, was effected on June 18, 2021. The value cor-
responds to the fair value at that time in accordance with IFRIC17.
2) The AGM 2021 resolved in favor of paying cash dividend compensation to the participants in Kinnevik’s long term incentive program from 2018.
21Interim Report Q2 2021
NOTES FOR THE GROUP (SEKM)
Note 1 Note 2 Note 3
Accounting Principles Risk Management Related Party Transactions
The consolidated financial statements Kinnevik’s management of financial risks Related party transactions for the
are prepared in accordance with the In- is centralized within Kinnevik’s finance period are of the same character as
ternational Financial Reporting Standards function and is conducted based on a the transactions described in the 2020
(IFRS), as adopted by the EU. This report Finance Policy established by the Board of Annual Report.
was prepared in accordance with the An- Directors. The policy is reviewed continu-
nual Accounts Act and IAS 34, Interim ously by the finance function and updated
Financial Reporting. Information in ac- when appropriate in discussion with the
cordance with IAS 34, Interim Financial Audit Committee and as approved by the
Reporting is provided in the notes as well Board of Directors. Kinnevik has a model
as in other places in the interim report. for risk management that aims to identify,
Dividend in kind is valued at fair value at control and reduce risks. The output of
the time of the distribution in accordance the model is reported to Kinnevik’s Risk,
with IFRIC 17 –“Distributions of Non-cash Compliance & Sustainability Committee
Assets to Owners” for the Group. For the and Board of Directors on a regular basis.
Parent Company the dividend is valued Kinnevik is mainly exposed to financial
at book value of the assets. risks in respect of:
The accounting principles are the same • Valuation risk, in relation to negative
as described in the 2020 Annual Report. changes in the value of the portfolio
• Liquidity and financing risk, in rela-
tion to increased cost of financing,
and difficulties in refinancing ma-
turing loans and facilities, ultimately
leading to payment obligations not
being met
• Foreign exchange rate risk, in rela-
tion to transaction and translation
currency exposure
• Interest rate risk, having an adverse
impact on financing costs
For a more detailed description of
Kinnevik’s risks and uncertainties, as well
as risk management, refer to Note 17 for
the Group in the 2020 Annual Report.
22Interim Report Q2 2021
Note 4 adjusted for interest payments and pre- Consumer Services
Financial Assets Accounted at miums is assumed to provide a good Since the outbreak of the pandemic in
Fair Value Through Profit & Loss approximation of fair value. early 2020, the Nordic online food and
In assessing the fair value of our unlisted Information in this note is provided grocery market as well as the last-mile
investments, we apply IFRS 13 and the per class of financial instruments that are logistics market have experienced a surge
International Private Equity and Venture valued at fair value in the balance sheet, in demand, which has led to many of our
Capital Valuation Guidelines, whereunder distributed in the levels stated below: businesses leapfrogging their business
we make a collective assessment to esta- Level 1: Fair value established based plans by 12-18 months with overperfor-
blish the valuation methods and points of on listed prices in an active market for mance exceeding previously forecasted
reference that are most suitable and rele- the same instrument. annual growth rates. As we enter a pe-
vant in determining the fair value of each Level 2: Fair value established based riod of year-on-year comparisons with
of our unlisted investments. Valuations in on valuation techniques with observable the early months of the outbreak, we note
recent transactions are not applied as a market data, either directly (as a price) or that our companies continue to maintain
valuation method as such, but typically indirectly (derived from a price) and not strong growth rates and perform against
provides important points of reference included in Level 1. our high expectations.
for our valuations. For new share issues, Level 3: Fair value established using The fair value of Kinnevik’s 28 percent
consideration is taken to whether newly valuation techniques, with significant in- shareholding in Budbee amounts to
issued shares have preferential rights, put from data that is not observable in SEK 1,259m. The total value of Budbee’s
such as liquidation preferences to pro- the market. equity amounts to SEK 4.5bn and is based
ceeds in a sale or listing of a business. For the companies that are valued on near-term forward-looking multiples
Valuation methods include revenue, GMV, based on multiples an increase in the of a peer group consisting primarily of
and profit multiples. When performing multiple by 10% would have increased more mature logistics companies, but
valuations based on multiples, considera- the assessed fair value by SEK 2,639m. also of InPost, a last mile e-commerce
tion is given to differences in size, historic Similarly, a decrease in the multiple by delivery company that completed its IPO
and future growth, profitability and cost 10% would have decreased the assessed during the first quarter of 2021. Similar
of equity capital. In its valuations, Kin- fair value by SEK 2,796m. to how the public listings of more com-
nevik also considers the strength of a parable innovative businesses have led
company’s financial position, cash runway, Liquidation Preferences to revaluations in our value-based care
and funding environment. Kinnevik’s unlisted investee companies investments, we believe the IPO of InPost
The valuation process for Kinnevik’s adopt different financing structures and and the multiples investors ascribe to
unlisted holdings is led independently may at times issue shares with liquidation its revenues provide a strong indication
from the investment team. Accuracy and preference rights. of the appropriate valuation level for a
reliability of financial information is en- Liquidation preferences determine next-generation last-mile delivery com-
sured through continuous contacts with how proceeds from a liquidity event are pany like Budbee. Accordingly, we have
investee management teams and regular allocated between shareholders. This al- expanded the forward-looking revenue
reviews of their financial and operational location may become increasingly com- multiple applied in valuing Budbee in
reporting. Information and opinions on plex over time, and Kinnevik’s share of the quarter. The multiple, however, is at
applicable valuation methods are obtai- proceeds may significantly deviate from a material discount to InPost in excess of
ned periodically from investment ma- its percentage ownership of the investee 55 percent, in spite of Budbee growing
nagers and well-renowned investment company’s issued equity. Accordingly, an at a significantly higher rate with com-
banks and audit firms. The valuations are increase or decrease in value of an inves- parable gross margins. Budbee aims to
approved by Kinnevik’s CFO and CEO tee company’s equity where liquidation grow revenues to more than SEK 1bn in
after which a proposal is presented and preferences are applicable may result in a 2021 and this strong growth compounds
discussed with the Audit Committee and disproportionate increase or decrease in with the expanded multiple, leading to
Kinnevik’s external auditors. After their the fair value of Kinnevik’s shareholding. the upwards reassessment of value in
scrutiny and potential adjustments, the Liquidation preferences may also entail the quarter. If the company continues
valuations are approved by the Audit & that the fair value of Kinnevik’s invest- to perform and markets remain suppor-
Sustainability Committee and included ment remains unchanged in spite of the tive, we see potential for value increases
in Kinnevik’s financial reports. assessed value of a particular investee from both a multiple and performance
When establishing the fair value of company as a whole changing materially. perspective.
other financial instruments, methods that An unlisted investee company’s transi- The fair value of Kinnevik’s 37 percent
in every individual case are assumed to tion into a publicly listed company may shareholding in Mathem amounts to
provide the best estimation of fair value also affect the value of Kinnevik’s share- SEK 1,671m. The total value of Mathem’s
are used. For assets and liabilities ma- holding due to the dismantling of such equity amounts to SEK 4.5bn and is based
turing within one year, a nominal value provisions. on trailing revenue multiples of a com-
23Interim Report Q2 2021
posite peer group of inventory holding Method & Investee Companies Fair Value (SEKm) % of Key Unlisted
e-commerce retailers and meal kit busi- Financial Assets
nesses. The assessed valuation implies a Trailing EV/Revenue (Online Grocers, Value Based Care) 13 158 46%
multiple of 1.6x the company’s last twelve
Forward EV/Revenue 14 192 50%
months’ revenues as at 31 March 2021,
and corresponds to the valuation in the Forward EV/GMV (Vivino, HungryPanda) 971 3%
company’s funding round in the second Other 64 < 1%
quarter of 2021. The corresponding im-
plicit multiple per 30 June 2021, the re-
levant date of our valuation assessment,
has come down and corresponds to an fourth quarter of 2020. amounts to SEK 468m, and is based on
approximate 25 percent discount to our The fair value of Kinnevik’s 11 percent 2022 revenue multiples of a peer group
composite peer group’s average multiple shareholding in HungryPanda amounts of online travel agencies such as Trainline
in consideration of Mathem’s earlier stage to SEK 339m, and is based on forward- and Booking. A discounted multiple is
of operational efficiency and profitability looking GMV multiples of a peer group applied on a continuously reassessed
compared to the peer group. The de- of food delivery businesses. The assessed revenue assessment. In the quarter, the
creased discount to peers in the quarter is valuation is slightly above the valuation at company strengthened its financial po-
driven by minor amendments to the peer which Kinnevik invested in the company’s sition by raising convertible debt. Our
group, and in relation the last quarter’s funding round in the fourth quarter of assessed fair value of the company as a
peer group composition the discount is 2020, due to positive changes in the whole continues to be at a level where
practically unchanged. valuation of the peer group and perfor- our equity investment no longer fully
The fair value of Kinnevik’s 21 per- mance largely in line with plan. benefits from downside protection from
cent shareholding in Oda amounts The fair value of Kinnevik’s 11 per- the preferential terms of our investment
to SEK 1,553m. The total value of the cent shareholding in Vivino amounts in the company’s 2018 equity fundraise.
company’s equity amounts to NOK 7.5bn to SEK 632m, and is based on forward- The fair value of Kinnevik’s 14 percent
and is based on trailing revenue multiples looking GMV multiples of a peer group shareholding in TravelPerk amounts to
of a composite peer group correspon- of global online marketplaces with high SEK 791m and is based on 2022 reve-
ding to that of Mathem. The assessed user engagement. The discount to the nue multiples of a peer group of online
valuation implies a multiple of 2.9x the peer group’s average GMV multiple is travel booking platforms, such as Cor-
company’s last twelve months’ revenues primarily calibrated by comparing Vivino’s porate Travel Management and Serko,
as at 31 March 2021, and corresponds profitability with that of the peer group, with reference to SaaS companies, such
to the valuation in the company’s fun- taking into account Vivino’s more effi- as Atlassian and Salesforce. The valua-
ding round in the first quarter of 2021. As cient marketing drawing on its ability to tion corresponds to the valuation in the
for Mathem, the corresponding implicit organically acquire customers through its company’s funding round in the first half
multiple of last twelve months’ revenues high-engagement platform. The decrease of 2021, and reflects the company’s con-
has come down per 30 June 2021, the in assessed fair value this quarter is due tinued strong acquisition of new clients
relevant date of our valuation assessment. to currency headwinds. and their travel budgets, as well as its
The implicit multiple is at a premium of The coronavirus continues to cause potential in a more normalized market
around 40 percent to the composite significant uncertainty in the travel indu- environment where TravelPerk’s SaaS-
peer group, but in line with its stronger stry and we focus on a more normalized like characteristics will re-surface. The
performers, reflective of the company’s 2022 in assessing the valuations of our decrease in assessed fair value is due to
longer-term growth potential, stronger businesses. Forward-looking consensus currency headwinds.
secular tailwinds, and the exceptional estimates remained flat during the first The fair value of Kinnevik’s 11 percent
operational efficiency of its proprietary half of 2021 after being downgraded by shareholding in Common amounts to
technology. As for Mathem, there have almost half during 2020, and share prices SEK 239m, and is based on forward-loo-
been changes to the peer group, and of online travel agencies traded sideways king revenue multiples of a peer group
in relation to last quarter’s peer group during the second quarter, above pre- consisting primarily of managed mar-
composition the premium has contracted. pandemic levels. We continue to seek to ketplaces with reference to businesses
The fair value of Kinnevik’s 11 percent reflect the development in public equity in the real estate industry. The assessed
shareholding and other interest in Simple markets in assessing the fair value of our valuation is in line with the valuation at
Feast amounts to SEK 110m, and is based investees in the sector, whilst taking a which Kinnevik invested in the first quar-
on forward looking revenue and contribu- conservative approach in forecasting the ter of 2021 as part of a second close of
tion profit multiples of a peer group of trajectory of our businesses and the reco- the company’s 2020 funding round. The
meal kit businesses. The assessed valua- very of the travel sector at large. decrease in assessed fair value is due to
tion is largely in line with the one at hand The fair value of Kinnevik’s 5 percent currency headwinds.
in the company’s funding round in the shareholding and other interest in Omio The fair value of Kinnevik’s 19 per-
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