Kinnevik’s Interim Report 1 January – 30 September 2022

2022-10-19 08:00:00

”Geopolitical and macroeconomic unrest continues to provide a challenging market backdrop for investors. For Kinnevik, the pressure on market multiples has had a negative impact on valuations and the fundraising environment is clearly more demanding than last year. However, our pipeline remains strong, albeit with deal flow coming at a slower pace. In this environment, our strong financial position and the strides we have taken in building out a broad, significant and balanced growth portfolio allow us not only to double down in the existing portfolio, but also to explore new and adjacent themes and sectors. In addition, we are looking for opportunities for consolidation, such as the proposed combination of Budbee and Instabox.”

Georgi Ganev, CEO of Kinnevik

Key Events

  • Budbee and Instabox announced they are joining forces in the new combined company Instabee, creating a new group with the power to invest in, and push the boundaries of, consumer-centric and sustainable last-mile delivery services for the e-commerce sector in Europe
  • We invested USD 50m into Solugen, the industrial green chemicals platform providing cheaper, safer chemicals without using fossil fuels. This is Kinnevik’s first sizeable investment into climate tech
  • Monese announced a USD 35m investment by HSBC as part of a broader, strategic partnership that will focus on Monese’s industry-leading, cloudbased Platform as a Service business

Investment Management Activities

  • We invested SEK 1.0bn during the quarter, of which SEK 508m into Solugen
  • For the first nine months of 2022, we have invested SEK 3.2bn in aggregate

Financial Position

  • NAV of SEK 58.0bn (SEK 207 per share), down SEK 3.2bn or 5% in the quarter and SEK 14.4bn or 20% year-to-date
  • Net cash position of SEK 12.5bn, corresponding to 27% of portfolio value by quarter-end

Events After the Quarter

  • In October, we invested EUR 25m into H2 Green Steel, the Swedish producer of green steel reducing carbon emissions by up to 95 percent compared to traditional steelmaking

Organisation

  • In September, Kinnevik announced that Samuel Sjöström will assume the position as Chief Financial Officer effective from 1 November 2022, replacing Erika Söderberg Johnson who will move into a role as Senior Advisor

A conference call will be held today at 10.00 CEST to present the results. The presentation will be held in English and also be made available via audiocast on Kinnevik’s website, www.kinnevik.com.

Link to webcast (listen only): https://edge.media-server.com/mmc/p/ioe54pmy

Those who wish to participate in the teleconference are welcome to register via the below link. Participants will receive dial-in numbers and confirmation code upon registration. Please make sure to register and dial in a few minutes before the teleconference begins.

Link to teleconference (for participants):
https://register.vevent.com/register/BI88f383303ffe4ce79783ff3af1f59e5a

Capital Markets Update
Kinnevik will host a digital Capital Markets Update today, 19 October, at 14.00-16.00 CEST. More information is available on Kinnevik’s website.

Link to the Capital Markets Update: https://live.twebcast.com/participant/Kinnevik-Capital-Markets-Update

MFN