Kinnevik Rocket Capital Markets Day Berlin, 22 May 2014 Introduction Cristina Stenbeck, Executive Chairman Lorenzo Grabau, CEO
Aug 16, 2015
Kinnevik Rocket Capital Markets Day
Berlin, 22 May 2014
Introduction
Cristina Stenbeck, Executive Chairman
Lorenzo Grabau, CEO
2
Kinnevik today – focus on growth sectors and markets
Leading international TMT focused investment company
• Significant stakes in publicly-listed, market-leading, cash flow generating Communication and Entertainment
companies
• Unique portfolio of investments in growth oriented E-commerce, Marketplaces and Financial Services
businesses
Significant size and scale across geographies
• Market Cap of SEK 69.3bn, NAV of SEK 66.2bn and Net Cash of SEK 1.8bn
• Present in over 80 countries across five continents with a focus on key growth markets
Focused investment strategy
• Invest early into companies and management teams pursuing most attractive opportunities within consumer
focused digital businesses
• Grow the amount of capital deployed in each company based on performance to be the key counterpart to
the founders / management teams
First outside investor into Rocket Internet
• Partnered with Rocket Internet in 2009 and invested SEK 10.8bn to date into Rocket and its portfolio
companies. Investments account for 27% of Kinnevik’s NAV
3
The Kinnevik portfolio
Large public
investments
Note: Selected investments only. Kinnevik GAV (Gross Asset Value) per Q1 2014
EFF/Rocket partnership Direct
Other private and
public investments
63% 27%
= Gross Asset Value (Q1 2014)
Private digital investments
6% 4%
4
Kinnevik identified the opportunity and partnered with Rocket Internet early
Note: Selected investors only
2009 2010 2011 2012 2013 2014
5
24%
Kinnevik and Rocket partnership
36%
Fashion General Merchandise Home & Living
Other investors
Note: Selected investments only
6
Rocket has built a global footprint complementary to Kinnevik’s international presence
Note: Footprint represents only companies attending on CMD
7
18
21
5
66
22
Change in
net cash
NAV Q1 2014
E-commerce &
Marketplaces
Communication,
Entertainment,
Financial
Services & Other
NAV Q1 2009
Kinnevik portfolio transformation to E-Commerce & Marketplaces since 2009
Dividends received and
divestment of Korsnäs
Net investments of
SEK 13bn
25
(113%)
44
(66%)
SEK bn Net of SEK 6bn in
dividends paid
E-commerce &
Marketplaces
Communication,
Entertainment,
Financial
Services &
Other
Net cash
<1 (1%)
3 (-14%)
21
(32%)
2 (3%)
18
8
Kinnevik E-commerce investments alongside Rocket
Investment vehicle Company 2009-2011 2012 2013-2014Q1 Total invested
amount
n/a 1,027 3,658 3,231* 7,916
Bigfoot 532 1,003 32 1,567
Bigfoot II 228 532 170 930
BigCommerce - 289 317 606
Other** 1,605 173*** (1,952)**** (174)
Total 3,392 5,655 1,798 10,846
SEK m
* Including SEK 2,372m of shares distributed by Rocket Internet
** Includes Rocket Internet and the remaining investments related to Rocket Internet
*** Net of SEK 974m received in dividends related to Groupon
**** Negative due to Rocket distribution of Zalando shares of SEK 2,372m
9
Kinnevik E-commerce & Marketplaces financial performance
(11)%
(19)%(24)%
(1 000)
(2 000)
(20)%
(40)%
3 000
2 000
1 000
0
80%
60%
40%
20%
0%
Q2 2013 Q1 2013 Q4 2012 Q3 2012 Q2 2012 Q1 2012
+73%
Q1 2014 Q4 2013 Q3 2013
+38% Sales
EBIT margin
SEK m
Note: Includes investments not related to Rocket Internet
10
Value of Kinnevik’s Rocket-related investments
23.6
17.6
10.8
Implicit value at latest funding rounds Kinnevik book value Capital invested*
SEK bn, per Q1 2014
*Net of dividends and disposals
11
Our partnership with Rocket Internet
Rocket
Advisory
Board
Operating
Company
Advisory
Boards
Operational
Reviews
Shareholder
Approvals
• Portfolio company operational and financial performance
• Strategic discussions
• Current and future venture pipeline
• Investment and divestment decisions
• In place for all largest companies
• Kinnevik representatives alongside Rocket and other
shareholders
• 4-6 meetings a year
• Based on monthly reporting from each company
• Relevant KPI’s, detailed profit and loss, working capital
and cash flow
• Continuous follow-ups with management teams
• Based on shareholder agreements for each company
• All major strategic and other decisions covered
• All changes to the capital structure, major investments
and stock options plans
• Matching rights for existing shareholders