Annual General Meeting Stockholm, May 18, 2015
Cristina Stenbeck CHAIRMAN OF THE BOARD
Kinnevik: Leading Global Entrepreneurial Investment Group 1936 Communications ~50% 4 e-Commerce Entertainment Consumer Founded Assets in Financial Services sectors emerging markets ~$10bn ~$38bn ~23% Aggregate 5 year total Market capitalisation valuation of group shareholder companies return 40+ 80+ 90,000+ Group companies Countries covered Group company employees 3
Kinnevik: Unique Set of Investments Across all Stages of Development Early Stage Growth Stage Late Stage Established Public Private 1 Private Public + Private private 1 Pricepanda merged with GetPrice to form NextCommerce, agreed exit from Foodpanda, Airu and Zocprint 4
Kinnevik: Balanced Presence Across Developed and Developing Markets Kinnevik NAV (SEK) 8bn 40bn 9% 46% 6bn 7bn 7% 8% 26bn 29% Core market Growing presence 5
Kinnevik’s Mission: Create, Invest in, Lead and Transform Businesses Kinnevik Corporate • Finance, Tax, Legal, IR, GRC, Business Intelligence, HR Create Invest Lead Transform • Create new • Invest growth capital • Long-term lead • Reposition existing businesses shareholder in investments • Partner with large listed entities • Partner with • Transform team founders and other • Select and support established leading investors and strategy entrepreneurs Board and • Support new product • Create new Management • Build up teams, development, partnerships to • Focus on strategic provide seed operations and accelerate change funding, engage geographical roll-out development and • Facilitate strategic on strategy and capital allocation • Establish M&A and support appropriate GRC consolidation operational development • Prepare for listing 6
Kinnevik’s Operating Model: Add Value to Our Investee Companies Develop strategic and Strategy and Attract world-class Partner with leading operational operational excellence talent investors partnerships • Develop strategic • Leverage global • Drivenumerous • Attract industry roadmaps and network to find and strategic, industry leading institutional expansion strategies attract world-class defining partnerships investors in follow-on talent for investee rounds • Introduce KPI and companies • Lead recruitement, • Execute fundraising reporting standards • Assist in negotiations design and implement processes • Add industry experts incentive plans and support where necessary implementation • Facilitate connections within the Kinnevik network Mauricio Romain Voog Ramos CEO, GFG CEO, + + Millicom Stefan Wilke Axel Hefer Board Member, CFO, Home24 Bima + + Jens Grede Alexis Babeau Board Member, Board Member, GFG GFG 7
Kinnevik’s Operating Model: Implement Best Practices in GRC Corporate Governance Risk Management Compliance Responsibility • • • • Represented on Boards Ensure investments have Ensure investments Require investments to of investments and robust risk management have processes to create corporate actively take part in processes identify and comply with responsibility policies decision making laws and regulations based on international • Improve risk awareness standards (Eg. UN • • Recruit Board Members among management teams Verify compliance Global Compact) with adequate across investments reporting structures • competence and implemented by Advocate ethical • Monitor risks regularly by relevant experience investments business practices screening risk registers within investments • • Maintain oversight over Review compliance • Address cyber risks across • operational reports at Board Drive compliance with investments with assistance performance and meetings and seek social and from technical experts financial reporting external legal counsel environmental laws and (namely G3) when considered regulators • Ensure investments necessary (e.g. • Advocate documentation of • have a good internal Oversee regulatory matters) key processes and control environment implementation of anti- implementation of controls across operations bribery and anti- to mitigate internal risks corruption procedures within investments 8
Kinnevik: We Build Large and Successful Companies Years before reaching Company Sector Country $1bn valuation Skype Communication Sweden 2 Zalando Fashion Ecommerce Germany 3 Lazada Horizontal Ecommerce Singapore 3 Mobli Communication Israel 3 Supercell Entertainment Finland 3 Global Fashion Group Fashion Ecommerce Emerging Markets 4 Coupang Ecommerce Korea 4 DeliveryHero Food Delivery Germany 4 Gree Entertainment Japan 4 Olacabs Taxi Booking India 4 Snapdeal Horizontal Ecommerce India 4 Wonga Financial Services UK 4 Home24 Home & Living Ecommerce Germany 5 Rocket Internet Ecommerce Germany 5 Colopl Entertainment Japan 5 Mojang Entertainment Sweden 5 Spotify Entertainment Sweden 5 Flipkart Horizontal Ecommerce India 6 Vkontakte Social Russia 6 Waze Ride Sharing Israel 6 Avito Online Classifieds Russia 6 Zoopla Online Classifieds UK 7 Kakao Communication Korea 8 Klarna Financial Services Sweden 8 BlaBlaCar Ride Sharing France 10 Monitise Financial Services UK 10 King.com Entertainment Sweden 11 Kinnevik investee company Indirect investment via Rocket Source: Forbes and Kinnevik analysis 9
Kinnevik: We Make a Real Contribution to Emerging Markets Area of impact Kinnevik Contribution • The number of full-time employees in Kinnevik’s • New employment: Creating jobs for General e-Commerce companies is 2,300 in thousands of people Latin America, 3,800 in Southeast Asia and 3,300 in Africa • BIMA offers financial protection to 7 million • Financial inclusion : Access to key financial customers, Millicom Mobile Financial products and services Services offers bank services to 8 million customers • • Gross Merchandise Value for Avito and Quikr Enabling SMEs: Create opportunities for SMEs and individuals to buy and sell represents 2.5% of GDP in Russia and India • Global Fashion Group offers 400,000 SKUs • Improved assortment and pricing: Greater and give customers in remote areas access to assortment, more affordable pricing, easier fashion through proprietary last mile delivery access services • Better GRC: Implement best in class • Improving labour standards and protecting governance structures, risk management children by implementing ethical supply chain processes, compliance procedures and practises across our e-Commerce businesses corporate responsibility standards 10
Kinnevik’s Approach to Shareholder Remuneration and 2014 Dividend Proposal • Kinnevik’s business objective is to create long-term value for shareholders, and to have that value reflected in the total return on our share. • Going forward the aim is to continue delivering growing annual cash returns over the long term but also introduce share buy-backs as a tool to enhance returns. • We shall track NAV per share as a key metric for measuring performance Leverage and dividend policy Dividend Proposal 2014 • • Given the nature of our new investments, For 2014, the Kinnevik Board proposes a our goal is to have little or no net leverage at dividend of SEK 7.25 per share the parent company − Attractive level (2.8% yield) • Kinnevik aims to pay an annual dividend − 100% financed from dividends received growing in line with dividends received from today investee companies and the cash flow − Over time we expect that dividends generated from investment activities received will grow to cover dividends • Buy-back mandate will be executed going paid forward when in a net cash position − Given liquidity of our portfolio, credit facilities can be used to manage cash flow mismatch between dividends, corporate costs shortfall and divestitures 11
Kinnevik: Well Positioned to Capture Future Opportunities Growing consumer markets Sustainable businesses • Large upside potential from growing internet and • Platforms solving everyday needs for either mobile penetrations individuals or small enterprises • Fast growing middle-class with young • Build entry barriers through a focus on strong populations willing to transact online operational and localized execution • Ability to disrupt desktop oriented models with • Sustainable value creation requires expertise mobile-only approach beyond just technology Kinnevik Differentiated selection Value added investor • Business builder • Significant operational and strategic expertise • Growth capital rather than late stage • Truly global network (ex. US) across multiple • Balanced returns based on evidence of sectors proof of concept and traction, while still offering • Strong commitment to investee companies in large potential upside follow-on rounds 12
Lorenzo Grabau PRESIDENT AND CEO
REVIEW OF 2014
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