Investor Presentation Kinnevik Q2 2013

8/12/2019 Investor Presentation Kinnevik Q2 2013

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PRESENTATION OF FINANCIAL RESULTS Q2 2013

19 July 2013


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FOCUS ON THE DIGITAL CONSUMER

Net Asset Value SEK 55.5bnonline now 30%

Option to acquire 3.5% of Zalando exercised

Mobile and media companies invest in digital services:

Millicom4G license in Colombia

Leverage on 4G services in Tele2 MTG starts MTGx

Strong balance sheet

Revised dividend policy:

Kinnevik aims to pay a steadily increasing annual dividend.

EUR 67m invested in Rocket Internet in July

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HIGHLIGHTS SECOND QUARTER 2013


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3

WITH 93% OF ASSET VALUE IN MOBILE, ONLINE &

MEDIA

Telecom &

Financial Services

54%(64%)

Online

30%(17%)

Media

9%(9%)

Industry and

Other investments

7%(10%)

OUR VALUE DRIVERS


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AND A FOCUS ON GROWING MARKETS

SALES PER REGION*

4

OUR VALUE DRIVERS

*Based on figures from FY 2012 but excluding Tele2 Russia


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TELECOMTHE DIGITAL LIFESTYLE

5

Millicom Mobile business model increasingly diversified

Cabletapping into LatAm TV and broadband opportunity

Mobile Financial Services (MFS)leveraging consumerreach

Online servicesinvesting in high growth online models

in emerging markets

Tele2

Challenger telecom operator offering mobile and fixedtelephony, broadband and related services

Front row player within new technology 4G

Broad range of products and services to residential and

business customers

TELECOM & FINANCIAL SERVICES


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MILLICOM

6

USD m Q2 2013 Q2 2012 Chang e (%)

Total revenues 1,258 1,181 6

EBITDA 463 513 -10

EBITDA margins 36.8% 43.4%

Mobile subscribers,

end of period (m) 47.4 44.5

Mobile is proving resilient

Strong growth in mobile data traffic and revenues

Cable & digital mediabuilding momentum organically

Mobile Financial Services10% of total mobile customer base active on MFS

OnlineNew launches and synergies


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TELE2

7

SEK m Q2 2013 Q2 2012 Change (%)

Operating revenue 7,476 7,787 -4

EBITDA 1,518 1,519 0

EBITDA margins 20 20

Mobile subscribers, end

of period (m)12.9 11.8

Good mobile growth development with focus on

Migration to post-paid and 4G services in Sweden

Accelerate build-out of network in Norway

Roll-out of 4G network in Netherlands

Maintain market share gains in Kazakhstan

Maintain focus on network roll-out and cost efficiency


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FINANCIAL SERVICES

8

Market with low penetration in emerging markets

Convergence between online, mobile and financialservices results in overlap with other Kinnevik focusareas

Online and mobile as medium to deliver financialservices to consumers

Bayport is Kinnevikslargest investment in thefinancial services sector

The major shareholder with 43% of the shares fullydiluted

Offers microcredits and financial services in Ghana,Zambia, Tanzania, Uganda, Botswana, Mozambique andColombia

Total assets USD of 440m and 261,000 customers

Milvik/BIMA provides microinsurance products to

mobile operators Operating in Ghana, Tanzania, Senegal, Mauritius,

Bangladesh, Sri Lanka and Indonesia

Insures more than four million lives
http://www.bayportfinance.com/http://www.bimamobile.com/


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OUR VALUE DRIVERS

ONLINE - ECOMMERCE AND MARKETPLACES

9

ONLINE IN KINNEVIK NAV (SEKm) Offline to online shift as strong as ever

Growth drivers:

Improving online user experience

Higher confidence in payment solutions

Mobile activity growth

High GDP and disposable income growth in

emerging markets

Assortment and convenience key to customer loyalty

Mobile platform gaining importance

207

Q2 2013

16 660

2009


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ONLINE

ZALANDO - CONTINUED SALES GROWTH

10

Strong growth in Q1 and

focus on operational

excellence in 2013

Core market DACH

reached break-even in full-

year 2012 and accounted

for majority of group sales

New categories and

countries are gaining

importance fast

~ 50% of sales outside

Germany

~ 50% of sales in new

categories

Average return rate is

around 50%

Net sales, EUR m

372

214

+74%

2013 Q12012 Q1


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ONLINE

ZALANDO IS PRESENT IN 14 EUROPEAN MARKETS

WITH STRONG LOGISTICS OPERATIONS

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zalando.se

zalando.no zalando.fi

zalando.co.ukzalando.dk

zalando.es

zalando.it

zalando.fr

zalando-prive.fr zalando.chzalando.at

zalando.de

zalando.nl

zalando.bezalando.pl

zalando-lounge.de

Brieselang (Summer 2011)

Flexible extension of footprint toaccommodate growth

First logistics center planned and operatedby Zalando

Erfurt (Summer 2012)

First large logistics center built to Zalandoneeds

Designed and operated by Zalando

Mnchengladbach (Summer 2013)

Second large logistics center constructionstarted in 2012

Same concept used as in Erfurt

Opening in H2 2013

Warehouse operations developmentCurrent market presence


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ONLINE

E-COMMERCE IN EMERGING MARKETS

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Africa

Middle East

South EastAsia

Australia

Russia & CIS

32

88

21

26

84

Jumia

Zando

Namshi

Zalora

Lazada

Jabong 156

The Iconic 218

Lamoda 445

Home24 550

Dafiti 796

Building strong market positions

Net Sales 2012 (SEKm)

Latin America

Europe

India


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AVITO

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Avito is the no 1 general online classified in Russia 10.7 million new listings per month and 37 million

unique monthly visitors in Q2

Non-listing fee monetization has commenced for real Revenues of SEK 84m in Q1 2013 (SEK 34m)

Avito is no longer dependent on marketing Existing user base and organic growth will generate

significant profit in 2013

Strong balance sheet

Net cash position

Strengthening ofAvito.rus position in the key Auto

and Real Estate categories

Continued expansion in new markets


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ONLINE

CDON GROUP

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Continued sales growth of 4.2% year-on-year in the quarter to SEK 964 million

Strong growth and strengthened market positions for the Fashion and Sports &Health segment

Sport & Health segment continues to deliver solid profitability

Results burdened by non-recurring items in CDON.com totalling SEK 32 million

SEK m Q2 2013 Q2 2012 Chang e (%)

Total revenues 964 925 4.2

Operating profit

(EBIT)*-6.2 0.5 neg

EBIT margins -0.6% 0.1%

* Excluding non-recurring costs and divested operations


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VALUATION OF UNLISTED ONLINE HOLDINGS

PREFERENCE STRUCTURE

Sales multiples according to peer average, discounted to consider factors such asprofitability and geographical market

Investments in Rocket Internet are structured such that invested amounts are

repaid first in case of realisation

Also, amounts recently invested have preference over amounts invested earlier

Indirect shares via Rocket Internet have generally been invested early. Atcompany valuations below value in latest financing round, fair value of these

shares are therefore generally lower15

SEK million

Basis for

Fair Value

Direct

Ownership

Indirect

Ownership

Fair Value

Direct

Fair Value

Indirect

Affected by

Preference

Structure

Zalando GmbH Sales multiple: 2.0x 29% 9% 7 971 2 372 No

Bigfoot I Sales multiple: 1.3-1.8x 28% 8% 1 503 84 Yes

Bigfoot II Sales multiple: 1.3x 30% 10% 438 - Yes

Home24 Sales multiple: 0.8x 24% 12% 487 5 Yes

Wimdu Sales multiple: 2.2x 20% 14% 263 37 YesBigCommerce Sales multiple: 0.8-1.2x 15% 13% 334 6 Yes

Avito Sales multiple: 9.9x 18% 14% 696 539 No


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Ownership Fair value as per 30 June 2013 Change in fair value

Investment (SEK m)

Direct

Owner-

ship

Indirect

equity

interest Total*

Invested

amount

Direct

ownership

Indirectly

held Total

Q2

2013

First half

2013

Zalando 29% 9% 38% 5 561 7 971 2 372 10 343 1 342 1 066

(Bigfoot I) Dafiti, Lamoda,

partly Namshi and Jabong28% 8% 36% 1 536 1 503 84 1 587 1 35

Dafiti 29% 536

Lamoda 30% 530

Jabong, Namshi and cash mixed 521

(Bigfoot II) The Iconic, Zalora,

partly Zando and Jumia30% 10% 40% 930 438 - 438 -291 -445

Home24 24% 12% 36% 791 487 5 492 -273 -280

Wimdu 20% 14% 34% 275 263 37 300 16 7

(BigCommerce) Lazada, Linio,

partly Namshi15% 13% 28% 427 334 6 340 -100 -100

Other Rocket portfolio

companiesmixed mixed mixed 659 610 415 1 025 -132 -174

Total Rocket Internet with

portfolio companies10 179 11 606 2 919 14 525 563 109

Avito 18% 14% 32% 336 696 539 1 235 184 311

Other online investments mixed mixed mixed 477 306 - 306 1 11

Total unlisted 10 992 12 608 3 458 16 066 748 431

CDON Group 25.1% 25.1% 646 594 - 594 -151 -198

Total online investments 11 638 13 202 3 458 16 660 597 233

* Not adjusted for potential dilution

ONLINE

ONLINE HOLDINGS

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OUR VALUE DRIVERS

MEDIA

17

Consumer behaviour has changedfundamentally and forever

MTG has a strong content portfoliowith established market positions and

powerful brands

Video is the growth driver

Launch of MTGx to acceleratedigital growth

18.8 million daily Metro readersyoung and urban


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MEDIA

MODERN TIMES GROUP

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Accelerated sales growthup 6% (y-o-y) at constant exchange rates

Investments on trackportfolio of content offerings for consumers strongerthan ever

Important strategic partnerships signed with leading third party distributors

Launch of MTGx to accelerate pace of digital innovation and expansion

SEK m Q2 2013 Q2 2012 Chang e (%)

Total revenues 3,619 3,517 3

Operating profit

(EBIT)*464 552 -16

EBIT margins* 12.8 15.7

* Before associates


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Sales down

divestments in Holland and Denmark

weak ad-markets in Sweden

Continued sales growth in Latin America

EBIT impacted by lower sales in Sweden and start-up costs in Puerto Rico

MEDIA

METRO

19

EUR m Q2 2013 Q2 2012 Chang e (%)

Operating revenue 40 53 -25

Total operating profit (EBIT) 1 4 -75

EBIT margins 2.5% 7.6%


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FINANCIALS

KINNEVIK HAS A STRONG BALANCE SHEET

20

SEKbn

Net debt in parent company per 30 June 0.5

Investment in Rocket in July 0.6

Guidance for further investments in H2 2013 up to 1.0

Leverage in parent company after expected investments is expected to beapproximately SEK 2 bln

Cash and available credit facilities of SEK 8.1 bln as per June 30


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CONCLUDING REMARKS

Continued focus on the digital consumer

Online growth continues

Solid performance in mobile and media companies

Strong balance sheet will support execution of strategy

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Investor Presentation Kinnevik Q2 2013

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