Kinnevik’s Interim Report 1 January – 30 September 2024
16 oktober 2024, 8:00 AMRegulatory information
"After seven years, the transformation to growth is completed. We enter the next phase of Kinnevik with a strong financial position, and with a growth-focused portfolio consisting of a high-performing core and several exciting earlier stage companies with the potential to create significant outcomes. During the quarter, we continued to execute on our strategic priorities, investing more capital into our core company Spring Health and our newer venture Aira. Valuations in the core companies grew on the back of strong growth and improving margins, but a full write-down of our remaining VillageMD investment and the weaker dollar weighed on our Net Asset Value.”
Georgi Ganev, CEO of Kinnevik
Key Events
- Completion of the third and final step of our full divestment of Tele2 to iliad/NJJ, releasing an additional SEK 637m
- Continued to grow portfolio concentration towards our high-conviction businesses through proactive capital allocation by participating in Spring Health’s funding round concurrent with further secondary acquisitions, and by participating in Aira’s extension round
- Investment in VillageMD written down to zero to reflect heightened uncertainty around actions of controlling shareholder Walgreens, assessment of options to salvage value of our investment ongoing
- Fair value of our unlisted portfolio down by 7 percent in the third quarter, driven by write-down of VillageMD and currency headwinds
- Core growth companies – Cityblock, Mews, Pleo, Spring Health and TravelPerk – continued to deliver strong results, growing revenues by more than 60 percent on average over the last 12 months and taking meaningful steps on their path to profitability
Investment Activities
- We invested SEK 1,262m in the third quarter, of which SEK 836m was invested into our core company Spring Health as part of their USD 100m funding round, valuing the company at USD 3.3bn with a concurrent acquisition of secondary shares. In 2024 to date, we have invested a total of SEK 1.5bn into Spring Health and our other core companies Cityblock, Mews, Pleo and TravelPerk
- We invested SEK 231m into our newer investment Aira, as part of their extension round together with co-investors Temasek and Altor
- An additional SEK 149m was invested into Oda in the third quarter, fulfilling the investment commitment made in connection with the company’s merger with Mathem
- We completed the third and final step of our divestment of Tele2 to iliad/ NJJ, releasing the final SEK 637m of the 13bn transaction
Financial Position
- Net Asset Value of SEK 37.4bn (SEK 132 per share), down 1.9bn or 5 percent in the quarter, and down 7.0bn or 14 percent compared to Q3 2023, when adjusting for the SEK 6.4bn extraordinary cash distribution
- Net Cash Position of SEK 12.2bn
Key Events After the End of the Quarter
- On 23 October, we will host our Capital Markets Day online and at Eric Ericsonhallen in Stockholm, an opportunity to hear more about Kinnevik’s strategy and outlook, and from the founders and leaders of our investee companies
A conference call will be held today at 10.00 CEST to present the results.
Link to the webcast (listen only): https://edge.media-server.com/mmc/p/gwm7t83x
Those who wish to ask questions during the conference call 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 call begins.
Link to conference call (for participants): https://register.vevent.com/register/BId26040fcef204c6aaac64f8c9f740459