Kinnevik Results Presentation Deck
LIQUIDATION PREFERENCES AND CURRENCIES HAVE A SIGNIFICANTLY
POSITIVE EFFECT ON OUR CARRYING VALUES AS PER QUARTER-END
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Q2 2022 Valuations of Unlisted Assets
Liquidation Preferences & Currencies
Liquidation preferences can provide some protection against downside in
sales or listings of businesses at a valuation lower than a previous private
funding round
Our valuation framework (IFRS 13 and the IPEV Guidelines) define fair value as the
price that would be received to sell an asset in an orderly transaction
We therefore take liquidation preferences into account when valuing our interests in
our investee companies
In constant currencies, the positive effect stemming from liquidation
preferences amounts to SEK 2.2bn per end of Q2 2022. In quarter-end
currency rates, the effect amounts to SEK 2.4bn
This means that as at end of June without preferences the fair value of our unlisted
assets would be SEK 2.4bn lower (around 8%), and that SEK 2.4bn in underlying
value appreciation is required before accruing an on-paper return on investment
This effect is centred around the new investments made in 2021 and early 2022
The Swedish krona has depreciated materially during 2022, in particular
against the US dollar
In Q2 2022, the dollar was up 10% against the krona, and during H1 2022 it
was up 13%
Had exchange rates been unchanged from end of 2021, the fair value of our
unlisted assets would be SEK 2.2bn lower (around 8%)
YTD Effect of Liquidation Preferences & Currencies
Bolstering Effect on Reported NAV, SEKbn
32.6
Q4 '21
Residual Fair Value
31.0
29.9
Q1 ¹22
Liquidation Preferences
Including SEK 2.1bn
in YTD net investments
29.3
2.2
2.2
9
24.9
Q2 '22
Currencies
The change in fair value of our unlisted growth assets is negative SEK 5.4bn or (16) % YTD when adjusting for net investments
Without the effects from liquidation preferences and favorable currency movements, the YTD decline in fair value would be closer to SEK 10bn or >(30)%
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