Kinnevik Results Presentation Deck
Intro
Net Asset Value
CHIEF EXECUTIVE'S REVIEW
Kinnevik's Second Quarter Financials
Our Net Asset Value amounted to SEK 54.0bn or SEK 192 per
share at the end of the second quarter, largely flat since end
of 2022. The fair value of our private businesses increased
by SEK 2.5bn to 32.5bn, through a 1 percent write-up and
SEK 2.1bn in investments. This was supported by large and
positive currency movements. In fixed currencies, growth and
improved profitability was offset by contracting multiples on
an aggregated portfolio level. Weak share price performance
in our listed assets Tele2 and Global Fashion Group brought
a negative SEK 1.7bn impact, and our Recursion investment
had a small positive impact during the quarter.
From a more important and longer-term perspective, during
the quarter we made use of market conditions to accrete
ownership and capital commitments in some of our highest-
conviction businesses. In addition to our investment in Spring
Health, we deployed SEK 0.6bn into TravelPerk, Instabee, Re-
cursion and HungryPanda. New investment activity remained
relatively subdued, with smaller early-stage investments in
biotechnology company Enveda and carbon removal business
Charm Industrial.
KINNEVIK
Portfolio Overview
Dear Shareholders, while volatility has come down, venture and growth capital markets remain a chal-
lenging environment for many companies and investors to operate in. Under these circumstances,
disciplined capital allocation and using our strong financial position wisely to maximize the impact
of our highest-conviction companies are crucial to long-term value creation. During the quarter, our
dedication to these priorities and our unique ability to seize opportunities in the current market is
manifested by our USD 100m investment in Spring Health. Through this investment, Spring Health
represents our largest aggregate investment since we commenced our transformation in 2018. We
believe Spring Health also has the potential to become one of the most successful investments in
Kinnevik's history.
Interim Report - Q2 2023
Sustainability
Doubling Down in High Conviction Companies
In the current market conditions, we are prioritizing dis-
ciplined capital allocation to maximize the impact of our
highest-conviction businesses and minimize the impact of
our lowest-conviction businesses. This quarter's USD 100m
investment in Spring Health is the most material example to
date. Since end of 2022, our ownership has increased from
5 to 12 percent and the company's share of our Growth
Portfolio has tripled from around 3 to 10 percent - changes
that would have been more difficult and expensive under
other circumstances.
Our conviction in Spring Health is underpinned by several
factors. The company addresses one of the fastest growing
public health issues, mental health, in the world's largest
healthcare market, the United States. It is run by a strong
founder duo in April Koh and Adam Chekroud, building their
business well-grounded in science. Spring Health's combina-
tion of precision mental healthcare and personalized care
delivery has proven to drive superior clinical outcomes for
enrolled employees as well as positive benefits to busines-
ses in terms of absenteeism, higher productivity, and lower
Financial Statements
Other
healthcare costs. The company grew its revenues by 270
percent in 2022 and is on a fully funded path to become
cash flow positive.
Our permanent capital structure and ability to multiply our
investment in companies as they grow and prove their busi-
ness are two of our most important competitive advantages
as an investor. By increasing our exposure to Spring Health as
our conviction has grown, we are executing a familiar model
previously applied in investments like Zalando and Livongo. In
both companies, we made substantial follow-on investments
during our journey as owners, and we are excited to do the
same with Spring Health.
Babylon Health Taken Private by Creditor
In June, Babylon Health announced it had agreed to be taken
private in a transaction supported by the company's main
creditor. Consequently, we have written off our investment
in the company in full. We decided not to participate in the
financial restructuring, in line with our priority to focus our ca-
pital allocation on companies where we have high conviction
in the long-term value creation potential. In connection with
this transaction, I left Babylon Health's Board of Directors. We
wish the company and the founder Ali Parsa well, and trust
that they just as us - have learnt several valuable lessons.
Continued Headwind Within Online Grocers
The valuation of our Norwegian online grocer Oda was down
substantially in the quarter. Oda and its Swedish equivalent
Mathem have faced significant headwinds in the past 18
months. As many e-tailers, but even more pronounced for
these more nascent online grocers, Oda and Mathem built up
significant capacity during the pandemic to meet the surge
in demand. When the pandemic subsided, the combination
of a ramped-up cost base, retreating online consumption,
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