Kinnevik AB Class A · OMXSTO:KINV_A
Kinnevik AB Class A — Investment AB Kinnevik — Debt Investor Presentation (November 2012)
26 slides from Kinnevik AB Class A's debt investor presentation, Nov 23, 2012
Slide 1: Bond Market Investment Presentation
Bond Market Investment Presentation 23 November 2012 With updates as per 29 November 2012
Slide 2: Key Credit Highlights
INVESTMENT AB KINNEVIK KEY CREDIT HIGHLIGHTS • Diversified portfolio in six investment sectors with a broad geographic footprint • High financial flexibility with 78% of the assets being listed • Low leverage in Kinnevik as well as for major holdings • Well established dividend policy in affiliated
Slide 3: Background and History
INVESTMENT AB KINNEVIK BACKGROUND AND HISTORY Kinnevik’s history • Founded in 1936, over 75 years of entrepreneurship under the same principal shareholders – Transformed itself from a local traditional industry group to a global telecom and media group – Focused on investments in fast growing consum
Slide 4: The Kinnevik Portfolio
OUR VALUE DRIVERS THE KINNEVIK PORTFOLIO Net Asset Value 2012-Q3 = SEK 59.8 bln. Agriculture & renewable energy 1% (2%) Paper & Microfinancing 1% (1%) packaging 8% (9%) Media 8% (7%) Online 20% (7%) Telecom & services 62% (74%) 4 The figures within brackets refer to the comparable period 2011.
Slide 5: Focus on Growing Markets
OUR VALUE DRIVERS FOCUS ON GROWING MARKETS SALES PER REGION 5 Average annual return of 20% last 30 years.
Slide 6: Telecommunication and Services
OUR VALUE DRIVERS TELECOMMUNICATION AND SERVICES • Managing the voice-to-data transition – 86% of revenue growth from new categories in Millicom – Information, Entertainment, Solutions and MFS – 13% of Millicom’s customers use data services – Half of Tele2’s post-paid customer base uses smart phones
Slide 7: Millicom
TELECOMMUNICATION AND SERVICES MILLICOM USD m 2012 9M 2011 9M FY 2011 Total revenues 3,548 3,352 4,530 EBITDA 1,537 1,551 2,088 EBITDA margins 43.3% 46.3% 46,1 Mobile subscribers, end of period (m) 46.0 42.2 43.1 Equity interest 38.0%, Voting interest 38.0% • Global telecommunication group in 13 eme
Slide 8: Tele2
TELECOMMUNICATION AND SERVICES TELE2 SEK m 2012 9M 2011 9M FY 2011 Total revenues 32,451 30,149 40,750 EBITDA 8,288 8,339 10,852 EBITDA margins 25.6% 27.7% 26.6% Mobile subscribers, end of period (m) 37.7 33.5 Equity interest 30.5%, Voting interest 47.7% • Europe’s leading telecom operations with pr
Slide 9: Online
OUR VALUE DRIVERS ONLINE • E-commerce penetration has doubled since 2004 • Dramatic shift from offline to online retail with a strong sales growth • Kinnevik’s online investments are global NUMBER OF INTERNET USERS (MILLION), 2000 vs 2011 20 10 5 9 Source: Internetworldstats.com
Slide 10: Online Holdings
ONLINE ONLINE HOLDINGS Direct Investment (SEK m) Invested amount Estimated fair values Ownership CDON 25.1% 5171) 681 Zalando 16% 2,197 3,703 Bigfoot (Dafiti, Lamoda, Namshi) 33% 1,536 1,448 Bigfoot II (The Iconic, Zalora, Zando) 34% 760 595 Rocket Internet GmbH and other mixed 2,778 5,255 portolio
Slide 11: Kinnevik Online Strategy
ONLINE KINNEVIK ONLINE STRATEGY • Consumer-related, transaction driven services with proven business models • Build a portfolio of large holdings in leading companies to capture long- term growth potential • Markets outside the US - emerging markets from an online perspective 11
Slide 12: Media
OUR VALUE DRIVERS MEDIA • TV-media is changing fast • But TV’s share of total advertising is still growing in Scandinavia • MTG’s driving forces: • Content • Technology • Geographical expansion • Online TV such as ViaPlay changes consumer behaviour 12
Slide 13: Modern Times Group
MEDIA MODERN TIMES GROUP SEK m 2012 9M 2011 9M FY 2011 Total revenues 9,716 9,762 13,473 Total operating profit 1,648 1,900 2,545 (EBIT) EBIT margins 17.0% 19.5% 18.9% Equity interest 20.3%, Voting interest 49.8% • Leading international entertainment broadcasting group with the largest geographical
Slide 14: Metro
MEDIA METRO EUR m 2012 9M 2011 9M FY 2011 Total revenues 141,9 138,8 197 Total operating profit 3,9 4,7 19,4 (EBIT) EBIT margins 2.7% 3.4% 9.8% Equity interest 99%, Voting interest 99% • The world’s largest international daily newspaper, published in over 100 major cities in 22 countries across Euro
Slide 15: Paper and Packaging
OUR VALUE DRIVERS PAPER AND PACKAGING • Growth = GDP (developing markets is the growth engine) • Paper and board have a 40% market share of food packaging • Demand for constant development and new thinking drives the market • New consumption patterns - different demands on packages Portion packs Re-
Slide 16: Korsnäs
PAPER & PACKAGING KORSNÄS SEK m 2012 9M 2011 9M FY 2011 Total revenues 6,479 6,241 8,254 Total operating profit 755 784 907 (EBIT) EBIT margins 11.7% 12.6% 11.0% Equity interest 100%, Voting interest 100% • Korsnäs is the second largest producer in the world of liquid packaging board, the second lar
Slide 17: Microfinance, Agriculture & Renewable Energy
OUR VALUE DRIVERS MICROFINANCE • Market with low penetration – 130 million clients, potential of 1.5 billion • Bayport is Kinnevik’s largest investment in microfinancing – The major shareholder with 43% of the shares fully diluted – Offers microcredits and financial services in Ghana, Zambia, Tanzan
Slide 18: Kinnevik's Current Financial Position
FINANCIALS KINNEVIK’S CURRENT FINANCIAL POSITION 2012 - Q3: Net Debt SEK 10bn Gross Asset Value SEK 70bn Net Debt to Gross Asset Value = 14,3% 2012 - Q3 Adjusted by the Zalando investment, Korsnäs sale and dividends in Q4 Net Debt SEK 3bn Gross Asset Value SEK 64bn Net Debt to Gross Asset Value = 4,
Slide 19: Financial Policy
FINANCIALS FINANCIAL POLICY • Financing: “To have financial flexibility in the parent company, the goal is to have no or low leverage.” “Kinnevik shall strive to avoid providing security in relation to its financing. The total value of secured loans may not exceed 20% of the total gross asset value
Slide 20: Financing
FINANCIALS FINANCING • Excluding Korsnäs, the Kinnevik financing consist of: (i) SEK 100m in overdraft facilities (ii) SEK 1.5bln Revolving Credit Facility currently secured by Korsnäs shares. - This facility will be refinanced in connection with the sale of Korsnäs or latest Apr 2013. (iii) SEK 6.5
Slide 21: Concluding Remarks
INVESTMENT AB KINNEVIK CONCLUDING REMARKS • Diversified portfolio in six investment sectors with a broad geographic footprint • High financial flexibility with 78% of the assets being listed • Low leverage in Kinnevik as well as for major holdings • Well established dividend policy in affiliated com
Slide 22: Contact Details
CONTACT DETAILS Mia Brunell Livfors, CEO +46 8 562 000 00 Mikael Larsson, CFO +46 8 562 000 70 [email protected] Joakim Andersson, Group Treasurer +46 8 562 000 18 [email protected] 22
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Slide 24: Net Asset Value
FINANCIALS NET ASSET VALUE Book value 2012 30 Sept SEK million Equity interest (%) Voting interest (%) Fair value 2012 30 Sept 2012 Telecom & Services Millicom 38.0 38.0 23 061 23 061 Tele2 30.5 47.7 16 124 16 124 Transcom 33.0 39.7 251 251 Total Telecom & Services 39 436 39 436 Online Rocket Intern
Slide 25: BillerudKorsnäs – Press Release (20 June)
APPENDIX BILLERUDKORSNÄS – PRESS RELEASE (20 June) Investment AB Kinnevik: Korsnäs to merge with Billerud - Kinnevik will be the largest owner in the combined company Investment AB Kinnevik ("Kinnevik") today announced that it has signed an agreement with Billerud AB regarding a merger between Korsn
Slide 26: BillerudKorsnäs – Press Release (29 November)
APPENDIX BILLERUDKORSNÄS – PRESS RELEASE (29 November) The combination between Korsnäs and Billerud AB has been closed in accordance with the agreement between Investment AB Kinnevik and Billerud AB signed on 19 June 2012. In connection with the closing, the employee representatives Bo Myrberg, Tobi
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