Kinnevik: Interim Report 1 January - 30 June 2020
”With a large part of the world in lockdown, the shift to digital has taken a giant leap forward. I am proud to note that, in the midst of the uncertainty and suffering created by the Covid-19 pandemic, our digitally-enabled companies are responding to the challenge and providing vital services to consumers, validating our strategy”
Georgi Ganev, CEO of Kinnevik
Key Strategic Highlights
- Completed a sell-down of a 4.4% stake in Zalando, generating net proceeds of SEK 6.7bn and providing us with increased financial flexibility to execute on our strategy
- The Board of Directors proposed an extraordinary cash distribution of SEK 7 per share, or SEK 1.9bn in total. The distribution follows the sell-down in Zalando and is subject to approval by an EGM to be held on 19 August 2020
- Continued to build our healthcare portfolio with a new investment into Cityblock, and follow-on investments in Cedar and VillageMD, which together with material value uplifts have brought our healthcare businesses' share of our portfolio value to 17%, compared to 3% a year ago
- Established climate targets in line with the Paris Agreement to significantly reduce greenhouse gas emissions from Kinnevik’s own operations and from our businesses
- Continued negative impacts from Covid-19 in our travel and emerging market businesses
Investment Management Activities
- We remain focused on re-allocating capital dynamically to ensure our portfolio remains balanced and vibrant. In the quarter, we invested SEK 400m in total, including:
- SEK 235m in Cityblock, a value-based care provider focused on complex, underserved urban populations
- SEK 74m in Cedar’s funding round
- SEK 28m in secondary shares in VillageMD
- Total divestments of SEK 6.9bn in the quarter, of which:
- SEK 6.7bn from the Zalando sell-down
- SEK 198m from the sale of a 23% stake in Qliro Group
Financial Position
- NAV of SEK 89.6bn (SEK 323 per share), up SEK 24.7bn or 38% in the quarter
- Net cash position of SEK 5.5bn, corresponding to 6.6% of portfolio value by quarter-end, and amounting to SEK 3.6bn adjusted for our upcoming SEK 1.9bn extraordinary cash distribution to shareholders
Events After the Quarter
- On 8 July, Kinnevik invested USD 25m in VillageMD's funding round led by Walgreens Boots Alliance
- During early July, Kinnevik fully exited its 12% shareholding in Home24, generating net proceeds of EUR 21m
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,
Link to the audiocast:
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: 4
SE: 1
US:
Confirmation code: 56505444#
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 13 July 2020.
For further information, visit or contact:
Torun Litzén, Director Corporate Communications
Phone +46 (0)70 762 00 50
Email
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.
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