#1Presentation of the Second Quarter of 2020 13 July 2020#2PRESENTATION OF THE SECOND QUARTER OF 2020 1 2 3 3 Today's Agenda Key Strategic Highlights Portfolio Companies' Performance Kinnevik's Financial Position Key Priorities Today's Participants Georgi Ganev Chief Executive Officer Erika Söderberg Johnson Chief Financial Officer Torun Litzén Director Corporate Communications Samuel Sjöström Head of Strategy 2 Ο ΚΙΝΝΕVIK#3THE ACCELERATING SHIFT TO DIGITAL IS VALIDATING KINNEVIK'S STRATEGY OF BUILDING CHALLENGER BUSINESSES THAT LEVERAGE DISRUPTIVE TECHNOLOGY Investing in the Power of Technology to Make Life Better Illustrative % of Household Expenditures TELE2 Financial Services PLEO Bread Communication & Data M monese DEPOSIT etter SOLUTIONS ent Healthcare Services SOC CITYBLOCK Consumer Services zaland Source: US Bureau of Labor Statistics. Based on the average US household, and excludes shelter (e.g. rent, mortgage, etc.). e-Commerce & Marketplaces include e.g. spending on clothes, shoes, beauty products and home furnishing; Financial Services include e.g. pension, savings and personal insurance OFG budbee Food Travel omio We target large addressable markets, and invest in disruption to democratize choice and build for the long term 3 Mat ftem.se- KINNEVIK#4KEY STRATEGIC HIGHLIGHTS IN THE SECOND QUARTER OF 2020 ■ Key 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 ■ ■ ■ NAV 30 JUNE 2020 SEK 89.6 CHANGE IN NAV Q/Q 38% 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 has 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 ■ ■ . ■ I ■ 1-YEAR TSR 31% ■ SEK 74m in Cedar's funding round SEK 28m in secondary shares in Village MD 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 5-YEAR TSR 9% Events After the Quarter On 8 July, Kinnevik invested USD 25m in Village MD'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 4 Ο ΚΙΝΝΕVIK#5KINNEVIK HAS COMPLETED A SELL-DOWN IN ZALANDO AND PROPOSES AN EXTRAORDINARY CASH DISTRIBUTION OF SEK 1.9BN TO SHAREHOLDERS ■ ■ Completed a sell-down of a 4.4% stake in Zalando, generating net proceeds of SEK 6.7bn Provides us with increased flexibility and a strong financial position from which to execute our strategy With the sell-down, Kinnevik has recouped the EUR 902m invested in Zalando and does not plan to realize further cash proceeds from Zalando Further to the transaction, Kinnevik's Board of Directors propose an extraordinary cash distribution of SEK 7.00 per share, SEK 1.9bn in total, to be approved by an EGM. The cash distribution was determined, as per Kinnevik's shareholder remuneration policy, based on our financial position and net investment forecasts Zalando is well placed to continue benefiting from the acceleration in consumer adoption of digital services and to extend its position as the leading European online fashion platform, particularly through its scalable Partner Program We Have Recouped Our Investment in Zalando SEKbn Extraordinary Cash Distribution 7.9 Pivoting Our Portfolio Towards Early Growth Zalando Sell-Down in Line With Our Strategy Invested Capital 1.9 4.9 5.9 Proceeds from Sell-Downs June 2020 September 2019 (5.7) +5.9 +6.7 2019 Q2 Zalando Zalando Sep '19 Jun '20 Providing us Financial Flexibility Net Cash / (Debt) Development Y/Y, SEKbn +0.5 +1.4 (3.0) Divest- Dividend Invest- ments Net ments (0.3) Other 5.5 5 2020 Q2 (1.9) Extra Dividend The sell-down is in line with Kinnevik's strategy to increase its exposure to younger growth companies. We see a number of attractive investment opportunities, and the sell-down has meaningfully strengthened our financial position and ability to execute our strategy 3.6 2020 Q2 (Pro Forma) KINNEVIK#6KINNEVIK HAS INVESTED USD 25M INTO CITYBLOCK, A VALUE-BASED CARE PROVIDER FOCUSED ON COMPLEX, UNDERSERVED POPULATIONS IN THE US Description Case Validity Strategic Fit ■ CITYBLOCK Investment Overview Cityblock is a US value-based healthcare provider focused on underserved populations with complex care needs The company provides Medicaid and Dual Eligible beneficiaries access to high-value, readily available, personalized health services by applying leading-edge care models and technology that fully integrate primary care, behavioural health, and social services In government-sponsored programs in the US, complex managed care represents 10% of the managed care population but drives 60% of managed care costs. Traditional care models underserve these patients, creating large acute care costs and losses for insurers ▪ Cityblock partners with insurance companies and carves high-risk, complex members out of the risk pool. Equipped with custom-built technology, Cityblock delivers better outcomes for these complex populations, while generating cost reductions and participating in the upside under value-based contracts ▪ The company's care model is community-based and uniquely focused on combining medical care with behavioural and social care as often large acute care costs are the result of several of these issues rather than medical conditions in isolation Cityblock is a good complement to our existing healthcare portfolio, serving a population that accounts for a large share of costs in the healthcare system, and is in line with our strategic focus to increase the share of early growth companies in our portfolio Kinnevik's prior investments in healthcare, particularly VillageMD, has provided us with the insight and understanding of the risk-bearing model to invest in Cityblock, which has the capacity to address large populations in another reimbursement channel Health is local. CITYBLOCK U YBOCZ 6 KINNEVIK#7KINNEVIK CONTINUES TO DOUBLE DOWN IN ITS HEALTHCARE PORTFOLIO THROUGH FOLLOW-ON INVESTMENTS IN CEDAR AND VILLAGEMD ■ cedar Building Our Healthcare Portfolio Two Follow-On Investments Transforming the Patient Financial Experience in the US USD 8m invested in Cedar's Series C funding round dar provides a smarter way for hospitals, health systems and medical groups to manage the patient payment ecosystem The round totalled USD 102m and Cedar will use the funding to invest in scaling the company further and accelerating product innovation and roll-out across the pre-visit and post-visit space, as it executes against its ambition to become the leading comprehensive healthcare consumer engagement platform Based on the transaction and Cedar's performance over the last months, the value of our investment in Cedar, excluding the new investment of USD 8m, has been written up by SEK 348m, or 166%, from last quarter VillageMD #1 Independent Primary Care Provider in the US USD 25m invested in Village MD's funding round ► Village MD is a leading national provider of primary care in the US ■ The round, which was completed in July and thus after the reporting period, totalled USD 275m and was led by the company's existing investor Walgreens Boots Alliance, which has committed to invest USD 1bn into VillageMD over the next three years to finance a deepened partnership with the company Because of the partnership and its impact on the future outlook for VillageMD, the value of our investment in the company, excluding the new investment of USD 25m, has been written up by SEK 1.4bn, or 163%, from last quarter We will continue to support our high-performing companies as they continue to grow and require additional capital 7 KINNEVIK#8WE MADE OUR FIRST INVESTMENT INTO HEALTHCARE IN 2016, AND THE SECTOR NOW MAKES UP 17% OF OUR PORTFOLIO 17.5 15.0 12.5 10.0 7.5 5.0 2.5 2016 babylon 3.5bn Capital Invested Livongo' 2017 Healthcare Investments & Returns From 2016 Q1 until Today, SEKbn 18.1bn Carrying Value 2018 cedar 5.1x MoM Accumulated Invested Capital Return 2019 c. 140% Unrealized IRR VillageMD town hall VENTURES 2020 8 CITYBLOCK KINNEVIK#9OUR NORDIC FOOD AND LAST MILE COMPANIES CONTINUE TO SEE STRONG DEMAND AND ARE RAMPING UP EFFORTS TO IMPROVE THE CUSTOMER EXPERIENCE ► MatHem saw demand for its service grow quickly as the pandemic reached Sweden in late-February, reaching levels never seen before in the company's 10-year history I MatItem.se. Opened up a second warehouse in Stockholm, and signed a new warehouse in Gothenburg Started releasing delivery slots two days in advance instead of all slots being open at all times Customers are responding well, however, satisfying the surge in demand has created efficiency challenges, negatively impacting margins Revenues LTM (SEKm) +13% 1423 1 467 1 509 1 542 1606 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Our Food and Last Mile Companies Update ■ 1 Kolonial experienced a significant surge in demand during the first weeks of March following the outbreak of Covid-19, with customer intake 10x higher than normal levels during the peak Kolonial.no Doubled its capacity by adding a third shift on the picking line as well as launching pre-packed food boxes in under 48 hours Has successfully grown its active customer base, reaching single-households and the elderly more efficiently, and now directing significant efforts into retaining the new shoppers on its platform Revenues LTM (NOKm) +27% 950 1 031 1 094 1 206 974 T Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 I budbee Budbee has seen significantly higher volumes in the last months, driven by both an increased number of packages and by more retailers signing up for the company's delivery solution Successfully closed a funding round of SEK 278m in the second quarter, with above pro rata participation from Kinnevik. The oceeds will be used to fuel further growth 2020 revenues has already surpassed 2019 levels and the company experienced volumes of 50% over budget in March Revenue growth Q1 2020 173% KINNEVIK#10OUR NET ASSET VALUE IS UP SEK 24.7 BN, OR 38%, IN THE QUARTER, DRIVEN BY A REBOUND IN CONSUMER SERVICES AND STRONG PERFORMANCE IN HEALTHCARE 64.9 2.6 24.8 7.4 2.6 28.8 Q1 2020 (1.5) 235 19.2 Rebound • Consumer Services Financial Services Healthcare Services TMT. Emerging Markets Net Cash / (Debt) NAV Per Share, SEK Zalando & GFG (1.1) Net Asset Value Development Tele2 6.9 More Resilient Healthcare 0.2 Online Food & Last Mile (0.1) (0.4) Less Resilient Other Developed Markets Emerging Markets (7.0) Net Investments NAV Up 38% 89.6 2.3 23.2 14.7 2.5 41.4 Q2 2020 5.5 323 10 Up 5% MTD 93.7 2.3 22.8 18.1 2.5 42.6 Listed per Last Close 5.5 338 KINNEVIK#11OUR NET CASH POSITION PROVIDES US FURTHER FINANCIAL STRENGTH AND FLEXIBILITY TO CONTINUE TO EXECUTE OUR 2019-23 CAPITAL ALLOCATION PLAN ■ ■ ■ ■ Our Financial Position Capital Structure and Financial Capabilities During the first quarter of 2020, we net divested SEK 6.5bn, with SEK 165m into existing businesses, SEK 235m into Cityblock, and SEK 6.9bn released from primarily Zalando and Qliro Group At the end of the second quarter of 2020, we held SEK 9.5bn in cash and money market investments, up from SEK 3.8bn at March end Net of SEK 4.0bn in commercial paper, bonds and unpaid investments/divestments, we had a net cash position of SEK 5.5bn corresponding to 6.6% of our portfolio value In Q2, we received the first SEK 516m tranche of Tele2's ordinary dividend, and will receive the second same-sized tranche in October Tele2's extra dividend was temporarily postponed in April to maintain a financial buffer until the company gains more clarity on the length and impact of the coronavirus outbreak Our share of the originally proposed extraordinary dividend amounts to SEK 657m Our current financial position provides us with the financial strength and flexibility to execute on our strategy, and complete our 2019-23 transformation provided we manage to continue to rotate capital within our younger assets As communicated in connection with our 2019 Year-End Release, we are looking to deploy slightly less in 2020 than the 4.6 billion SEK we deployed in 2019 9.5 Cash & MMFs (0.2) CPs Composition of Net Cash / (Debt) By Source, SEKbn and % of Portfolio Value (1.0) (1.4) (1.5) Bonds (2020-08, 2022-03 & 2025-02) 0.1 Other 5.5 6.6% Net Cash 11 (1.9) 3.6 4.3% Extra Net Cash Dividend (Pro Forma) KINNEVIK#12KINNEVIK HAS SET TWO EMISSIONS REDUCTION TARGETS IN LINE WITH THE PARIS AGREEMENT AND THE 1.5°C AMBITION Climate Targets Description Actions 1 Climate Targets for Kinnevik and Our Portfolio Announced in May 2020 Net zero greenhouse gas emissions from Kinnevik's own operations and business travel by 2020 (Scope 1, 2 and business travel) Reduce Kinnevik's own greenhouse gas emissions to as close to zero as possible, and offset emissions from business trips and other unavoidable emissions to achieve net zero emissions. Reduce Kinnevik's own emissions through an internal footprint reduction overview Offset emissions from business trips and other unavoidable emissions through a permanent greenhouse gas removal program Issue a TCFD report (Task Force on Climate-related Financial Disclosures) and report to CDP (the Carbon Disclosure Project) ■ 2 I The reduction target for the portfolio is the key focus of our environmental efforts Ensure all portfolio companies set relevant climate targets across their operations and value chains to align with actions needed to limit global temperature rise to 1.5°C above pre-industrial levels. Due to the high growth nature of many of our companies, their emissions will be measured in relation to the development of relevant economic and physical metrics (e.g. per unit of revenue or per product). 50% reduction in greenhouse gas emission intensity in Kinnevik's portfolio by 2030 compared to 2020 (Majority of Scope 3) Implement a greenhouse gas emissions reporting tool in all Kinnevik's portfolio companies Assist companies in setting relevant climate targets and defining a roadmap to reach the targets Drive tailored transformation programs for select companies 12 Ο ΚΙΝΝΕVIK#13KINNEVIK HAS THREE CLEAR PRIORITIES GOING FORWARD Continue to Evolve the Portfolio Towards a Higher Proportion of Growth Companies Strengthen Our Portfolio Balance Across Sectors, Stages and Time to Liquidity Reallocate Capital More Dynamically Through Attractive Exits as Our Young Portfolio Matures 13 KINNEVIK#14KINNEVIK WE BUILD DIGITAL BUSINESSES