Kinnevik Ab Class A · OMXSTO:KINV_A
Kinnevik Ab Class A — Merger or Acquisition (March 2016)
20 slides from Kinnevik Ab Class A's merger presentation, Mar 29, 2016
Slide 1: Kinnevik Investor Presentation
KINNEVIK INVESTOR PRESENTATION 29 March 2016
Slide 2: Disclaimer
DISCLAIMER The information contained in this presentation is public information only, but it does not necessarily represent all information related to the issues discussed or presented herein, or all views of the company. The information has been researched by the company with due care but no repres
Slide 3: Why Digital Asset Management
WHY DIGITAL ASSET MANAGEMENT DIGITAL FINANCIAL SERVICES SELECTION CRITERIA DIGITAL ASSET MANAGEMENT Money transfer Large market Multi trillion USD market Important consumer need Majority of consumers underserved Payments Regulatory tailwinds Regulatory focus on fiduciary advice Ass
Slide 4: Overview of Betterment
OVERVIEW OF BETTERMENT Entrepreneur led; founded in 2008, launched in 2010 now with a ~ 150 person team based in New York Targeting customers across wealth brackets; a pioneer in providing choice to the previously unadvised through technology and automation Personalized, goal based, customer-a
Slide 5: Betterment Has a Fully Vertically Integrated Platform
BETTERMENT HAS A FULLY VERTICALLY INTEGRATED PLATFORM Other digital advisors User dashboard Control only Advice & planning some UX Behavioural effects Vertically integrated user Account opening experience, brokerage, Banking APIs & funding recordkeeping & custody Trading APIs & frac. shares Rely on
Slide 6: Personalised, Goal Based Advice via an Easy to Use Interface
… THAT GIVES INVESTORS PERSONALISED, GOAL BASED ADVICE VIA AN EASY TO USE, INTUITIVE INTERFACE Source: Betterment 6
Slide 7: Uses Technology to Help Optimise Financial Outcomes
… AND USES TECHNOLOGY TO HELP OPTIMISE FINANCIAL OUTCOMES EXAMPLE: TAX IMPACT PREVIEW EXAMPLE: ACCOUNT AGGREGATION • Utilise behavioural finance • Provide holistic advice • Helps curb behaviour leading to long-term underperformance, • Full overview of the financial situation helps customers e.g., sw
Slide 8: Betterment Platform Is Available Across Channels
THE BETTERMENT PLATFORM IS AVAILABLE TO INVESTORS ACROSS CHANNELS BETTERMENT FOR BUSINESS BETTERMENT INSTITUTIONAL • Only turnkey 401(k) service that includes personalized • Efficient institutional wealth management platform for asset management for all 401(k) participants RIAs, with simple AUM-base
Slide 9: Significant Growth in Assets Under Management
SIGNIFICANT GROWTH IN ASSETS UNDER MANAGEMENT BETTERMENT ASSETS UNDER MANAGEMENT BY END OF QUARTER USD BN 4.0 3.5 3.0 AuM has grown over 750% over the 2.5 last two years 2.0 1.5 1.0 0.5 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1* 2010 2011 2012 2013 2014 2015 2016
Slide 10: Best-in-Class User Ratings
BEST-IN-CLASS USER RATINGS “There’s a lot of competition in the robo-advisor game, but Betterment has emerged as the current leader of the independent launches, with more than $3.2 billion in assets under management. It’s clear why Betterment is attracting assets and clients: The company offers inno
Slide 11: US Asset Management Is a $33TN Market Growing 8% Per Year
THE OPPORTUNITY IS SIGNIFICANT AS ASSET MANAGEMENT IN THE US IS A $33TN MARKET GROWING AT 8% PER YEAR US AUM HAS GROWN SUBSTANTIALLY SINCE 2009… …AND GENERATES SUBSTANTIAL PROFITS $33T $10T $23bn $23T Revenue pool $80bn $33bn $136bn $6T $8T $4T $8bn Serviced by Betterment $17T Profit pool $28bn $47b
Slide 12: Americans Moving Away from Active Towards Passive Investing
AMERICANS ARE INCREASINGLY MOVING AWAY FROM ACTIVE STRATEGIES TOWARDS PASSIVE INVESTING X Retail AuM in 2014 PREDICTED ANNUAL GROWTH IN AUM BY ASSET CLASS AND STRATEGY Projected annual net flows as % of 2014 AUM Balanced/Multi-asset 5.4 1.87 Passive equity 3.6 1.47 Passive bond 3.3 0.42 Alternative
Slide 13: Clients Have Shifted to the Direct Channel
AND OVER THE LAST TWO YEARS, CLIENTS HAVE PRIMARILY SHIFTED TO THE DIRECT CHANNEL Clients switching from/to firm (avg) Where clients are switching to1 Last 2 years, % of total client base % of switchers From To Net -1.8% RIAs 10% Full service -5.2% 3.4% Bank/Ins. 18% Direct -2.6% 4.2% +1.6% RBD/IBD
Slide 14: Majority of Assets and Customers Are Unadvised or Partially Advised
TODAY, THE MAJORITY OF ASSETS AND CUSTOMERS ARE UNADVISED OR ONLY PARTIALLY ADVISED ASSETS BY # OF HOUSEHOLDS BY Net investable HOUSEHOLD WEALTH HOUSEHOLD WEALTH assets per household 0,2m Traditional 2m advisor target >$10m $5T Traditional advisor target $2-10m $11T Automated 116m market opportunity
Slide 15: Automated Advice Is Growing Rapidly
AUTOMATED ADVICE IS GROWING RAPIDLY TO SERVE UNMET NEEDS OF CONSUMERS GROWTH OF AUM FOR AUTOMATED ADVISORS % OF MARKET COMFORTABLE WITH RECEIVING INVESTMENT ADVICE THROUGH GIVEN CHANNEL Today, less than 1% of US $2 200bn 51% AuM are receiving automated advice ~60% of 2016 survey respondents think th
Slide 16: Betterment Is the Leading Independent Digital Advisor
BETTERMENT IS THE LEADING INDEPENDENT DIGITAL ADVISOR LARGEST AUTOMATED ADVISOR BY CUSTOMERS LEADING OFFLINE PLAYERS ALSO HAVE DIGITAL OFFERINGS BUT ARE LARGELY TARGETING THEIR OWN CUSTOMERS • Entirely digital asset management without personal advisors, however with customer 150K service • Key produ
Slide 17: Market Large Enough for Multiple Players to Co-exist
IN A MARKET IS LARGE ENOUGH FOR MULTIPLE PLAYERS TO CO-EXIST Total US AuM: $33T Total non- retirement AuM: $27T Citi’s projection for digital advisor market in a decade: $0.004T $5T Source: Betterment, 3rd party research, Citi Research’s ”Rise of the Machines: Retail Revolution” 17
Slide 18: Transaction Summary
TRANSACTION SUMMARY • Round: Series E • Size: USD 100m • Kinnevik participation: USD 65m • Other investors: USD 35m from internals including Bessemer Venture Partners, Anthemis, Francisco Partners and Menlo Ventures • Post-money valuation: USD 700m • Kinnevik post-money ownership: 9.3% • Kinnevik go
Slide 19: The Pillars of Kinnevik
THE PILLARS OF KINNEVIK E-commerce and Communication Entertainment Financial Services Healthcare marketplaces 19
Slide 20: Further Information
FURTHER INFORMATION For further information, please visit www.kinnevik.com or contact: Torun Litzén, Director of Investor Relations − E-mail: torun.litzé[email protected] − Phone: +46 (0)8 562 000 83 − Mobile: +46 (0)70 762 00 83 20