Kinnevik Results Presentation Deck
Intro
Net Asset Value
CONSUMER FINANCE
Our Consumer Finance businesses are benchmarked against different
but in part overlapping public market benchmarks, reflecting their dif-
ferences and similarities in business models.
Betterment is primarily benchmarked against digital wealth managers
such as Avanza (AZA.ST) and Nordnet (SAVE.ST), as well as the broader
public SaaS company universe considering the recurring revenue cha-
racteristics of its fee-based assets under management ("AUM") model.
AUM has increased materially during the first half of 2023 driven by the
appreciation of broader market indices, amounting to USD 36.9bn per
end of May. Betterment has also enjoyed significant growth in its cash
deposit product, and strong net deposits from its customers. An under-
lying write-up in spite of a contracting multiple is muted by the effect of
liquidation preferences this quarter.
Lunar is benchmarked against a mix of the aforementioned digital
wealth managers, and consumer subscription businesses such as Netflix
(NFLX) and Match Group (MTCH) considering the similarities in business
model (albeit with very different offerings and underlying consumer
markets). During the first quarter, Lunar raised EUR 35m in new financing
from existing investors. Kinnevik participated with slightly less than our
pro rata share of the round, and our fair value is more than 35 percent
below the valuation implied by this funding round even after the increase
in valuation this quarter.
Monese is benchmarked against similar peer groups as Lunar, but with
references drawn to software licensing businesses such as Cisco (CSCO)
and Oracle (ORCL) with respect to its B2B revenue streams. In this quarter,
positive movements in the peer group and on-plan performance drive a
write-up of the fair value of our stake. A continued relative growth of the
company's B2B offering may warrant a slightly increased multiple going
forward considering the more attractive margin structure of this business
line relative to the consumer offering.
KINNEVIK
Interim Report Q2 2023
Portfolio Overview
Consumer Finance
Revenue Growth (2022)
Gross Margin (2022)
EV/NTM R
EV/NTM R (Q/Q Change)
Equity Value (Q/Q Change)
Note:
12x
9x
6x
3x
Sustainability
Our
Investees
5%
26%
46%
EV/NTM Revenue and Revenue Growth
Key Public Benchmarks as at Quarter-End
5.4x
(1)%
+8%
Peer
Average
10%
3%
Digital Wealth Managers
65%
5.9x
"Peer Top Quartile" data points are the average metrics of the top quartile peers in terms of revenue multiple
+0%
+14%
Peer Top
Quartile
(1)%
74%
8.5x
(7)%
(1)%
15%
Financial Statements
ā Subscription Businesses
8%
+8%
20%
Unlisted Portfolio Weight
Other
Fair Value Change (Q/Q)
Software Licensing
25%
30%
High-Growth SaaS
35%
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