Kinnevik’s Interim Report 1 January – 30 September 2023
”The market environment in which we operate continues to be highly challenging, and we are not satisfied with the development of our net asset value and share price. To support our companies in navigating the tough business climate, we are working closely with our founders and co-investors to increase efficiency in each business and to strike the right balance between growth and profitability. Many difficult decisions need to be made, but they are made with the intent to shape a more resilient portfolio and position it for long-term value creation. We remain committed to our strategy of doubling down in our high-conviction companies, deploying more capital into our focus sectors and making use of the opportunities that a more risk-averse market provides.”
Georgi Ganev, CEO of Kinnevik
Key Events
- In line with our priority to double down in our highest conviction companies, we made follow-on investments in H2 Green Steel and Enveda. H2 Green Steel now has a funded business plan, taking another big leap towards start of operations end of 2025
- We invested in Aira, a clean energy-tech company
- We exited our full stake in German fintech company Raisin
- Instabee is pressured by an e-commerce market with significantly contracting volumes and price-sensitive consumers opting for cheaper delivery options, resulting in a sizeable write-down in the quarter
Investment Management Activities
- We invested SEK 1.5bn in the quarter, including:
- SEK 871m into H2 Green Steel
- SEK 371m into Aira
- SEK 166m into Enveda
- 2023 to date, we have invested SEK 4.5bn in aggregate, focused on follow-on investments and share acquisitions in our highest conviction companies
- We divested our stake in Raisin for SEK 275m in the quarter. 2023 to date, we have made divestments of SEK 1.3bn in aggregate
Financial Position
- NAV of SEK 50.8bn (SEK 180 per share), down SEK 3.3bn or 6 percent in the quarter
- Net cash position of SEK 7.6bn, corresponding to 17 percent of portfolio value (SEK 8.1bn pro forma Tele2 dividends received in October)
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/prxi6wnc
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/BI9d6f1c09ce2043ffb5effecc637491ce