Kinnevik Ab Class A · OMXSTO:KINV_A
Kinnevik Ab Class A — Q2 2015 Earnings Presentation
26 slides from Kinnevik Ab Class A's earnings presentation, Jul 22, 2015
Slide 1: Presentation of Second Quarter 2015
Presentation of Second Quarter 2015 22 July 2015
Slide 2: Second quarter 2015 – summary considerations
Second quarter 2015 – summary considerations Operating Companies’ Performance • Communication: Millicom organic revenue growth of 9% in local currency (excluding UNE), Tele2 mobile end-user service revenue growth of 7% • Fashion e-commerce: Zalando’s preliminary sales up 33-35% with an EBIT margin o
Slide 3: A. Q2 2015 Operating Companies' Performance
A. Q2 2015 OPERATING COMPANIES’ PERFORMANCE 3
Slide 4: Public companies: communication, entertainment & e-commerce
Public companies: communication, entertainment & e-commerce Millicom Tele2 MTG • Strong underlying organic revenue and • Strong mobile end-user service revenue for • Healthy underlying performance despite EBITDA in local currency, growing by 9.0% the group of 7% ongoing adverse currency effects on t
Slide 5: Q2 2015 operating results for selected public companies
Q2 2015 operating results for selected public companies Reported revenue Q2 2014 Q2 2015 (SEKbln) 14.3 12.2 6.8-6.9 5.1 4.1 4.2 3.1 3.3 1.1 1.2 1 2 3 1,4 Millicom Tele2 MTG Qliro Zalando Organic 9% 7%2 0% 7% 33-35% growth Y/Y: Margin Q2’14 Q2’15 Q2’14 Q2’15 Q2’14 Q2’15 Q2’14 Q2’15 Q2’14 Q2’15 EBITDA
Slide 6: Recent Rocket Internet activity
Recent Rocket Internet activity New launches and investments Convertible bond issuance • Rocket Internet issued convertible bonds with an aggregate principal amount of EUR 550m. The bonds have a 7-year maturity and carry a coupon Acquisition via Investment Launch Launch Launch of 3% per annum Delive
Slide 7: Rocket Internet LPV sum of the parts valuation
Rocket Internet LPV sum of the parts valuation 6.1 LPV (EURbln) as at 30 June 2015 1.2 4.9 0.2 0.15 0.16 0.3 0.6 1.8 1.6 Proven Proven Regional Emerging Stars Concepts Strategic Other Total LPV Net Cash Total LPV Winners Winners Internet Participations Investments + Net Cash with direct K without di
Slide 8: Global Fashion Group: key financials
Global Fashion Group Financial results and key performance indicators BRLm RURm INRm AEDm EURm Q1 2015 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Q1 2014 GMV 212 150 7,962 3,776 3,551 2,306 95 29 54 24 % growth 42% - 111% - 54% - 230% - 129% - Selected KPIs Total orders (m) 1.1
Slide 9: Home & Living and General Merchandise: key financials
Home & Living and General Merchandise Financial results and key performance indicators EURm EURm EURm USDm Q1 2015 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Q1 2014 GMV 63 30 61 40 44 18 209 45 % growth 108% - 50% - 148% - 363% - Selected KPIs Total orders (m) 0.3 0.2 0.7 0.4 0.2 0.2 1.1 0.6 %
Slide 10: Avito: key financials
Avito: financial results and key performance indicators Q1 2015 Q1 2014 Page views1 26bln 17bln Mobile views 11bln Desktop views Selected KPIs % mobile views 41% 27% 5bln % growth 52.9% - 16bln 12bln Monthly audience2 27.4m 25.8m % growth Q1 2014 Q1 2015 6.2% - Revenues3 RUR 1,207m RUR 852m (RURm) +
Slide 11: B. Q2 2015 Kinnevik Investment Activity
B. Q2 2015 KINNEVIK INVESTMENT ACTIVITY 11
Slide 12: Global Fashion Group: minimum EUR 41m primary investment
Global Fashion Group (GFG): minimum EUR 41m primary investment and agreement to contribute shareholding in two Brazilian e-commerce businesses In July 2015 Kinnevik announced that it is leading a EUR 150m internal financing round in GFG Separately, Kinnevik agreed to contribute its entire shareholdi
Slide 13: BIMA: USD 16m primary investment in mobile micro insurance leader
BIMA: USD 16m primary investment in mobile micro insurance leader In June 2015, Kinnevik committed to invest USD 15.5m in BIMA as part of an USD 38.4m internal funding round 461 Company Overview SEKm • In 4 years, BIMA has become the global leader in mobile micro 347 insurance products 206 206 213 •
Slide 14: Quikr: USD 20m secondary purchase in market leader
Quikr: USD 20m secondary purchase in market leader in very large classifieds market In July 2015, Kinnevik made a further USD 20m investment in Quikr as part of a secondary share purchase by Kinnevik and a number of new investors; Kinnevik becomes the largest shareholder Company Overview SEKm • Lead
Slide 15: Transcom: successful exit of remaining stake completed in Q2
Transcom: successful exit of remaining stake completed in Q2 Kinnevik divested its remaining 1.9 million shares in Transcom, corresponding to 7.4% of the outstanding shares for a total consideration of SEK 159m. The average price was SEK 84 per share or c. 27% premium to the transaction with Altor T
Slide 16: C. Kinnevik Financial Position
C. KINNEVIK FINANCIAL POSITION 16
Slide 17: Net asset value: up 4% in the second quarter
Net asset value: up 4% in the second quarter Financial Services & Other Communication NAV by segment Entertainment Net Cash (SEKbln) E-commerce & Marketplaces % Share of GAV NAV Per Share (SEK) 89.6 3.0 (2.0) 87.3 (0.4) 2.6 3% (0.6) 0.2 83.9 2.6 3% 4.0 4.5 2.4 3% (1.3) 3.5 4% 4% 4.0 Including 5% neg
Slide 18: Capital market trends impacting the portfolio value
Capital market trends impacting the portfolio value Price Development for Listed Peers Q2 2014-15 Currency Trading Q2 2014-15 (vs SEK) 160 160% 150% 140 140% 130% 120 120% 110% 100 100% 90% 80 80% 70% 60 60% 50% 40 40% Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Fashion E-C
Slide 19: Increase in fair value of private assets driven by Quikr, Avito and Bayport
Increase in fair value of private assets driven by Quikr, Avito and Bayport Change in Latest Kinnevik Acc. Net Fair Value Net Investments Fair Value Fair Value Transaction Fair Value Investment (SEK m) Ownership Invested Q1 2015 Q2 2015 Q2 2015 5 Q2 2015 Value (LTV) vs LTV Global Fashion Group 1, 2
Slide 20: Investment activity & financial position Q2 2015
Investment activity & financial position Q2 2015 1 Investment Activity Q2 (SEK m) 2 Financial Position2 (SEK m) Investments Net Debt (31 March 2015) 112 GFG -3821 Net Investments -318 BIMA -1291 Net Dividends Received 973 Other -48 Operating Expenses -42 Total -559 Other cash flow from operations -1
Slide 21: Framework for share buybacks
Framework for share buybacks Kinnevik aims to pay an annual dividend growing in line with dividends received from its investee companies and the cash flow generated from its investment activities. Kinnevik will launch a share buyback program when our shares trade at a significant discount to their i
Slide 22: D. Concluding Remarks
D. CONCLUDING REMARKS Trvestnent AB Koanevike 22
Slide 23: We continue to progress towards achieving our strategic objectives
We continue to progress towards achieving our strategic objectives 1 Build a select number of leading digital consumer brands 2 Implement operational excellence within existing investee companies 3 Create value through consolidation 4 Develop strong strategic and operational partnerships 5 M
Slide 24: 7 of the 34 consumer unicorns outside of the US and China
We have participated in the creation of 7 of the 34 consumer “unicorns” outside of the US and China Years Years before before Company Sector Country1 Company Sector Country1 reaching reaching USD 1bln USD 1bln Skype Communication Sweden 2 Home24 Home & Living e-Commerce Germany 5 Yello Mobile Consum
Slide 25: And we have delivered on our return targets
And we have delivered on our return targets Five years CAGRs: NAV: +13%, Share Price +16% and TSR +20% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 315 304 303 276 247 234 236 238 223 220 207 208 212 206 208 215 212 206 200 184 169 NAV/share (SEK) Kinnevik B share price OMXS30 (rebased) Sou
Slide 26: Upcoming events for Kinnevik and our companies
Upcoming events for Kinnevik and our companies Company Event Date Avito Q2 2015 Trading Statement 30 July 2015 Zalando Q2 2015 Results 13 August 2015 Kinnevik E-Commerce Workshop 17 September 2015 Rocket Internet H1 2015 Interim Financial Statements 30 September 2015 Millicom, MTG, Tele2, Qliro Q3 2