Kinnevik Ab Class A · OMXSTO:KINV_A
Kinnevik Ab Class A — Q4 2013 Earnings Presentation
24 slides from Kinnevik Ab Class A's earnings presentation, Feb 14, 2014
Slide 1: Presentation of financial results Q4 2013
Presentation of financial results Q4 2013
Slide 2: Highlights 2013
Highlights 2013 • Net Asset Value up by 11% to SEK 65.5 bln • Mobile companies return to growth • Zalando increased sales by 52% to EUR 1,762m • SEK 2.4 bln invested in growth assets – 95% in online • Solid financial position with net cash balance of SEK 2.4 bln • Board of Directors propose a divide
Slide 3: Strong growth in Net Asset Value (SEKm)
Strong growth in Net Asset Value (SEKm) 65 527 61 839 58 769 57 513 54 941 44 829 39 168 25 717 24 325 20 042 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 3
Slide 4: Strong market positions to maintain growth momentum
Strong market positions to maintain growth momentum Highlights Telecom & 57% Financial Services • Focus on core sectors and markets Online 33% • Online 33% of Kinnevik’s asset in line with strategy Media 9% • Emerging markets important focus to drive growth Industry & other 1% investments Proportion
Slide 5: Kinnevik is at the forefront of change
Kinnevik is at the forefront of change Telecom & Financial Services 5
Slide 6: Millicom
Millicom Highlights Geographical distribution of revenues % • Strategy to pursue growth across four strategic pillars Africa working • Foundations in place to exploit new digital opportunities 20% Central America • Helping customers to adopt a digital lifestyle at home or 37% on the go 43% South Ame
Slide 7: Tele2
Tele2 Highlights Net Sales distribution between countries (%) • Encouraging mobile end-user service revenue growth in Other Sweden, the Netherlands, and Kazakhstan Croatia 8% • Fixed operations in Netherlands showing signs of Kazakhstan stabilization 4% 5% Sweden • Shift from pay-as-you go to bucket
Slide 8: Zalando is the largest standalone pure online fashion player by net sales in Europe
Zalando is the largest standalone pure online fashion player by net sales in Europe Net Sales development (EURm) +52% +EUR603m • Strong growth in net sales, adding DACH EUR 603m of net sales (2012: EUR 1,762 649m) • DACH3 net sales of over EUR 1bn +127% +EUR649m • Gained market share in all regional
Slide 9: Zalando is Europe's most visited fashion site with over 300m visits in Q4 2013
Zalando is Europe’s most visited fashion site with over 300m visits in Q4 2013, from both desktops and mobiles Visit development (million per quarter) App App App App App Mobile innovations: 1.0 1.0 2.0 2.0 2.2 m.site rollouts App launches & updates „Best tablet site amongst fashion sites“ 350 Texti
Slide 10: Online in emerging markets
Online in emerging markets Eastern Europe Africa +355% +550% 2012 2013 2012 2013 Latin America Proportional share of revenue Asia +184% +295% 2012 2013 2012 2013 10
Slide 11: MTG
MTG Highlights Distribution of sales between market areas % • Products & consumer offerings stronger, more relevant & MTG Studios, Others & more available than ever MTGx, Radio eliminations • Audience share gains & subscriber growth in almost all 8% Free-TV markets Pay-TV -1% Scandinavia 27% Emergin
Slide 12: Online portfolio
Online portfolio Total direct Total direct Change in fair Change in fair and indirect Invested and indirect value during value during Investment (SEK m) ownership amount fair value Q4’2013 FY 2013 Zalando 36% 7 916 12 136 886 2 876 Avito 31% 336 2 196 742 1 273 Bigfoot I 35% 1 536 1728 87 176 Dafiti
Slide 13: Valuation of unlisted holdings
Valuation of unlisted holdings Affected by Direct Indirect Fair value Fair value preference SEKm Basis for valuation ownership ownership Direct Indirect structure Zalando GmbH Sales multiple: 2.0x 36% - 12 136 - Yes Avito Sales multiple: 13.5x 31% - 2 196 - No Bigfoot I Sales multiple: 1.4-2.0x 27%
Slide 14: Capital structure and dividend
Capital structure and dividend Five year overview Net Asset Value Gross Asset Value Net Debt 68 378 70 000 64 636 61 719 63 092 65 000 60 000 53 062 65 527 55 000 61 839 50 000 57 513 58 769 45 000 44 829 2 435 0 -2 950 -8 233 -7 123 -6 539 -5 000 -10 000 2009 2010 2011 2012 2013 Highlights • Kinnev
Slide 15: Considerations on the Group
Considerations on the Group Cristina Stenbeck Executive Chairman
Slide 16: Kinnevik today – strong position in growth sectors and markets
Kinnevik today – strong position in growth sectors and markets • Leading international TMT focused investment company • Market capitalization of SEK 75.6bn, net cash position of SEK 2.4bn as of December 2013 • Investment strategy focused on long-term value creation and on delivering shareholder valu
Slide 17: Leadership stakes in very significant businesses
Leadership stakes in very significant businesses ~ 200 2.6x 75.6 65.5 1.2x Kinnevik NAV Kinnevik Investee Company Equity Value Equity Value Note: Figures in SEK billions. NAV as of 31 Dec 2013; Market Cap as of 12th Feb 2014 17
Slide 18: Present in many of the most attractive growth markets globally
Present in many of the most attractive growth markets globally 10% Eastern Europe 49% Western Europe 31% Latin America 8% 2% Africa Asia Core market Growing presence Little or no presence 18
Slide 19: All about building powerful brands that deliver innovative services to consumers
All about building powerful brands that deliver innovative services to consumers E-commerce and Marketplaces Communications Financial Services Entertainment 19
Slide 20: Strategy of improving our existing positions and investing in growth
Strategy of improving our existing positions and investing in growth Established , Market-Leading Businesses Newer, Challenger Businesses • We focus on promoting each company’s brand, • We identify, assess and invest in disruptive new industry position and regional presence business models • We clos
Slide 21: A focused organisation to deliver our two-pronged strategy
A focused organisation to deliver our two-pronged strategy Established , Market-Leading Businesses Newer, Challenger Businesses • Small number of high-value established • High number of growth investments and businesses partnerships • Companies publicly listed • Small number of more mature challenge
Slide 22: Kinnevik - eight key priorities
Kinnevik - eight key priorities 1. Become the premier long-term investor in the best tech-enabled businesses 2. Embed ourselves in key countries to the same extent as a local entrepreneur 3. Stay ahead of technological innovation and in identifying new business opportunities 4. Run a streamlined set
Slide 23: Strategy Commercial Effectiveness
Purpose-led investing, entrepreneurial culture and values Strategy Commercial Effectiveness Attitude Management Style and Professional Development 23
Slide 24: Dovestonent LB Sbnnevith
Dovestonent LB Sbnnevith