Kinnevik: Interim Report 1 January - 30 September 2020
”As the world continues to grapple with the Covid-19 pandemic and its severe effects on a growing number of people and countries, the momentum in our digital businesses remained strong in the third quarter. In addition to a good operational development in many of our companies, global equity markets have also increasingly allocated capital into tech stocks, resulting in significant multiple expansion currently supporting our net asset value development.”
Georgi Ganev, CEO of Kinnevik
Key Strategic Highlights
- Zalando raised its full-year 2020 outlook on the back of exceptionally strong and profitable growth in the third quarter
- Livongo and Teladoc announced the intention to merge their businesses, creating an unmatched, comprehensive platform for virtual healthcare delivery
- Invested in Common, a residential brand and tech-enabled managed rental housing marketplace in the US, and thereby broadening our Consumer Services portfolio towards business models that reflect broader consumer trends
- Made our first investment in the Nordic healthcare space through an investment in Joint Academy, a Swedish digital health company specialised in the treatment of chronic joint pain
- Our healthcare and online food companies see continued strong demand and inflow of new customers, with indications of a more lasting shift in consumption patterns
- 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 732m in total, including:
- SEK 232m into VillageMD as part of the funding round led by Walgreens Boots Alliance
- SEK 184m into Common
- SEK 131m into Joint Academy
- SEK 114m into Omio, in connection with the company's convertible loan raise
- The extra dividend of SEK 1.9bn from the Zalando selldown was distributed to shareholders during the quarter
- We divested our 12% shareholding in Home24, generating net proceeds of EUR 21m, and completed our Qliro Group exit by swapping our residual stake for shares in MatHem
Financial Position
- NAV of SEK 107.9bn (SEK 388 per share), up SEK 20.3bn or 23% in the quarter, adding back paid dividend of SEK 1.9bn
- Net cash position of SEK 3.0bn, corresponding to 2.9% of portfolio value by quarter-end. Adjusting for the dividends received from Tele2 in early October, our net cash position amounted to SEK 4.2bn
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: 64229483#
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 15 October 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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