Kinnevik Results Presentation Deck
Intro
Net Asset Value
peer group multiple contraction flow through our valuations without
adjustment. We also increasingly focus on multiples of expected revenue
over the next twelve months ("NTM") to deemphasize the direct weight
of importance placed on more longer-term projections. A focus on NTM
forecasts when reflecting changes in multiples of listed peers means that
the valuations of some of our companies demonstrating high growth and
low cash burn are more resilient than that of the average listed peer, and
more in line with the stronger constituents of the respective peer group.
In the table to the right, we show the average multiple contraction
in valuations that are not underpinned by transactions that took place
in the current valuation environment, during or shortly after the second
quarter of 2022. During the quarter, the average NTM revenue multiple
contraction in our unlisted portfolio was 34 percent, around 5 percent-
age points more moderate than the average peer. For the first half of
2022 the multiple contraction in our unlisted portfolio was 43 percent,
around 12 percentage points more moderate than the average peer.
This moderation primarily stems from our Software investments. Here,
the peer group's average multiple contraction has been weighed down
by the reversal of trends in sectors like e-commerce. This stands in stark
contrast to our two largest Software investments, Pleo and TravelPerk, that
are enjoying significant tailwinds as pandemic restrictions have eased and
corporate travel and expense volumes have begun to rebound materially.
This, we believe, warrants a multiple compression more in line with the
peer group's more resilient quartile rather than its average compression.
LIQUIDATION PREFERENCES
Kinnevik's unlisted investee companies adopt different financing struc-
tures and may at times issue shares with liquidation preference rights.
Liquidation preferences determine how value is allocated between
shareholders in e.g. a sale or listing of a business, and typically means
that holders of preference shares receive proceeds in priority over holders
of common shares in the event of a sale or public offering. In general,
these liquidation preferences have the result that Kinnevik recoups its
investment capital if the valuation of the company exceeds the amount
of capital it has raised in aggregate. Due to liquidation preferences, the
allocation of proceeds between shareholders in a liquidity event may
KINNEVIK
Interim Report Q2 2022
Portfolio Overview
Value Drivers in the Unlisted Portfolio
2022 Q1-2022 Q2 Approximations, SEKbn
+4.8
L
31.0
Q1 2022
Category
Multiple Contraction
EV/NTM Revenues, 2022 Q2 and H1
• Value-Based Care
• Virtual Care
Sustainability
• Platforms & Marketplaces
• Software
• Consumer Finance
Revenue
Growth
Unlisted Portfolio
Including Q2 2022 Transactions
-8.4
Multiple
Contraction
-33%
Investee Contraction
(Weighted Average)
-43%
-38%
-34%
-31%
-34%
-30%
Financial Statements
+0.5
Net
Investments
Q2 2022
Peer Contraction
(Average)
-36%
-43%
-41%
-43%
-28%
-39%
+3.6
Liquidation
Preferences &
Currencies
Other
-2.1
Other
Investee Contraction
(Weighted Average)
-45%
-61%
-51%
-42%
-38%
-43%
H1 2022
-40%
29.3
Q2 2022
Peer Contraction
(Average)
-41%
-58%
-53%
-61%
-41%
-55%
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