Kinnevik Results Presentation Deck
Intro
FINANCIAL REVIEW
CAPITAL REALLOCATION
Investment (SEKm)
Agreena
Charm Industrial
Enveda
HungryPanda
Instabee
Lunar
Oda
Mathem
Parsley Health
Recursion
Spring Health
Superb
TravelPerk
Other
Investments
Teladoc
Other
Divestments
Net Investments / (Divestments)
Net Asset Value
KINNEVIK
Q2 2023
Interim Report Q2 2023
108
258
15
254
187
145
1 069
203
2
2 241
10
10
2 231
H1 2023
119
108
258
15
254
23
24
187
104
145
1 592
19
203
3
3 054
1 020
10
1 030
During the quarter we focused our capital deployment on follow-
on opportunities, investing in total SEK 1.9bn into our existing
portfolio. More than half of this capital deployment, SEK 1.1bn,
related to acquisitions of secondary shares in Spring Health.
These acquisitions bring our aggregate capital commitment
to the company to SEK 2.5bn, making it our largest aggregate
2 024
Portfolio Overview
Sustainability
investment since the beginning of our transformation in 2018.
The remaining SEK 0.8bn in follow-ons were primarily invested
into Instabee, TravelPerk and Recursion. These investments, just
as those into Spring Health and Agreena in the previous quarter,
serve as examples of our ability and priority to capture oppor-
tunities to deploy capital into our highest-conviction investees
in the current market environment.
On the new investment side, we made two smaller investments
in carbon removal business Charm Industrial and biotechnology
company Enveda, both of which we will be looking to increase
over time as and if they meet our expectations.
Our outlook at the beginning of 2023 was to invest around
SEK 5bn split roughly 50/50 between new investments and follow-
on investments into the existing portfolio. These expectations
were primarily sensitive to two factors - our ability to deploy as
much capital as we would like into our existing high-conviction
businesses, and our ability to source attractive new opportunities
in the current market environment. As a consequence of the
completion of our significant follow-on investment into Spring
Health this quarter, among others, we expect the percentage
share of investments into the existing portfolio to be closer to
two-thirds of our aggregate 2023 investments than the 50/50
split set out at the onset of the year.
CAPITAL STRUCTURE
As at 30 June 2023, Kinnevik had a net cash position of SEK 8.8bn
(19 percent of Portfolio Value). This net cash position was mainly
made up of SEK 12.2bn in cash and short-term investments, less
3.5bn in senior unsecured bonds with a remaining tenor excee-
ding 12 months (maturing in 2025, 2026 and 2028).
During the second quarter, Kinnevik received SEK 0.5bn in
ordinary dividends from Tele2 and we expect to receive another
SEK 0.5bn in ordinary dividends in the fourth quarter of 2023.
Financial Statements
Other
CAPITAL ALLOCATION FRAMEWORK
Our expectations over the medium-term are to:
Invest half of our capital into new investments, and the other
half into follow-on investments in our existing portfolio
• Add up to eight new companies per year
• Continue to evolve our thematic and sectorial focus
Seek to build an adequate level of influence in our compa-
nies, rather than specific ownership stakes
Build and maintain a portfolio across different stages of ma-
turity, with 10-20 companies making up the lion's share of
portfolio value
FINANCIAL TARGETS
Attractive Returns
Kinnevik's objective is to generate a long term total return to our
shareholders in excess of our cost of capital. We aim to deliver
an annual total shareholder return of 12-15 percent over the
business cycle.
Low Leverage
Given the nature of Kinnevik's investments, our goal is to carry
low leverage, not exceeding 10 percent 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 shareholders through extra dividends.
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