Kinnevik : Earnings Report

9 July 2024

PRESENTATION OF

KINNEVIK'S

FIRST HALF OF 2024

H1 2024: AGENDA

Agenda

1. Key Events of the Quarter
2. • Tele2 Divestment & Extraordinary Cash Distribution
   • Development in Core Growth Companies
   • NAV Pressure From e-Commerce
3. Financial Update
4. • Financial Position
   • Net Asset Value Development
   • Private Company Valuations
5. Our 2024 Priorities
6. Q&A

Today's Presenters

Georgi Ganev	Samuel Sjöström	Torun Litzén
CEO	CFO	Director Corporate Communications

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H1 2024

Section 1

KEY EVENTS OF THE QUARTER

9 July 2024

3

H1 2024: KEY EVENTS OF THE QUARTER

With the Tele2 divestment and extraordinary cash distribution, we have completed our strategic transformation into a growth-focused investment firm

Key Events of the Quarter

• NAV of SEK 39.3bn or SEK 140 per share, down 5% Q/Q
  Unlisted portfolio down 7% driven primarily by portfolio-wide multiple contraction
  Core growth companies - Mews, Spring Health, Cityblock, Pleo, TravelPerk - down 5% relative to public benchmarks down 13%
  Step #2 of Tele2 divestment completed, SEK 9.4bn net proceeds in the quarter
• Extraordinary cash distribution of SEK 6.4bn or 23 per share
  Total shareholder distributions of SEK 88bn since 2018
  Net cash of SEK 13.5bn pro forma full Tele2 divestment
• Disciplined capital allocation with deployment focused on companies showing the strongest proof-points,accelerating the portfolio's share of capital invested in our highest- conviction companies
  Acquired SEK 177m in secondary shares in Cityblock - a company that reached USD 1bn in revenue during 2023, doubling from 2021
  Participated in Recursion's USD 200m new issue with a SEK 103m investment due to the company's significant progress, with five assets in the clinic, seven clinical read-outs expected over the next 18 months, and several major partnerships announced
  SEK 198m invested into Oda, financing committed in connection with the company's merger with Mathem

 2024 AGM	 Portfolio Transformation	 USD 200m Capital Raise
SEK 6.4bn Cash Distribution	Tele2 Divestment
Chris Gibson
		CEO & Co-Founder

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H1 2024: KEY EVENTS OF THE QUARTER

Step #2 of Tele2 divestment and our SEK 6.4bn extraordinary cash distribution completed during Q2, step #3 expected to close during the third quarter

Tele2 Divestment

Steps & Key Parameters (SEK)

Step & Timing

Shares Sold

Stake Sold

Stake Retained

Net Proceeds

Conditions

Completion

to iliad/NJJ

to iliad/NJJ

by Kinnevik

to Kinnevik

to Close

Step #1

31.3m B Shares

4.5% of Capital

15.3% of Capital

2,840m

None

3.5% of Votes

32.6% of Votes

Step #2

14.2m A Shares

14.3% of Capital

0.9% of Capital

9,391m

FDI Approval

85.5m B Shares

25.3% of Votes

7.3% of Votes

Kinnevik AGM & SEK 6.4bn Extraordinary Cash Distribution

Tele2 Dividend Received				23m	-
		0.9% of Capital			EC Merger Control
Step #3	6.5m A Shares	Fully Exited	637m	and/or A Share	During Q3
7.3% of Votes
				Reclassification

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H1 2024: KEY EVENTS OF THE QUARTER

2024 to date, our core companies have delivered on operational expectations as a group, and now represent almost half of our portfolio value from 2% in Q4 2020

Core Growth Companies

Portfolio Concentration

Core Growth Companies Share of Total Portfolio Value

50%

45%

40%

35%

30%

25%

20%

15%

10%

5%

Q4 '20

Q2 '24

Operating Performance 2024 To Date

Jan-May Actuals vs Expectations in Q4 2023

+62%
+60%
		Our Core Growth
	+29pp	Companies
	+26pp
Growth	EBITDA Margin
	Y/Y Improvement

Expectation in Q4 2023		Actual

Note:	Averages are weighted by fair value.	6

H1 2024: KEY EVENTS OF THE QUARTER

Another quarter of NAV pressure from e-Commerce leading to low-point in share of portfolio - focus on profitability improvements and capital efficiency

NAV Pressure From e-Commerce

 Three e-commerce investees facing	Declining Share of Portfolio	Declining Average Revenue Growth
significant challenges over the last two years	Instabee, Job&Talent and Oda/Mathem Share of Growth Portfolio Value	Instabee, Job&Talent and Oda/Mathem
- Oda/Mathem, Job&Talent and Instabee

Growth down from 77% in 2021, to 2% in 2024E

Share of Growth Portfolio down from 16% at Q2 2022 peak, down to 7% today

15.0%

+77%

• New CEO and team at Oda/Mathem post merger, with efficiency program and reduction in headcount

12.5%

+65%

Implementing proven Norwegian logistics solution on Swedish fulfilment centre

SEK 198m in financing provided in Q2, committed in end of 2023 merger

10.0%

7.5%

• Job&Talent facing significant slow-down in growth in 2023-24 as e-commerce demand came down and remained muted

Strong but not commensurate profitability improvements over the last quarters

5.0%

+2%

2.5%

(6)%

• Instabee has struggled over past quarters, operations now stabilized with new equity

financing during the quarter without	Q4 '21	Q2 '24	2021	2022	2023	2024E
participation from Kinnevik

Note:	All financial metrics are Kinnevik estimates and may be meaningfully lower than company budgets, plans and forecasts. Averages are weighted by fair value.	7

H1 2024

Section 2

FINANCIAL UPDATE

9 July 2024

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H1 2024: FINANCIAL UPDATE

SEK 12.8bn net cash position after 6.4bn extraordinary cash distribution, capital deployment expected to increase towards second half of 2024

Financial Position

• SEK 1,108m invested in H1 '24, primarily into core companies Mews (419m), Cityblock (177m) and Pleo (29m), and into newer venture Recursion (103m)

SEK 198m in financing provided to Oda as part of commitment at merger

• First two steps of Tele2 transaction with net proceeds of SEK 12.3bn completed

Includes SEK 23m dividend received in the quarter on third step's perimeter

• Record date for SEK 6.4bn extraordinary cash distribution in late June
• Ending Q2 with SEK 12.8bn in net cash (13.5bn pro forma third step of Tele2 exit)
  Treasury net >SEK 300m in H1 '24
• Deployment expected to increase in H2 '24, remaining patient and selective
• Long-term capital allocation framework at upcoming October CMD

Change in Net Cash

YTD and Pro Forma Step 3 of Tele2 Exit (SEKbn)

		+12.3	+0.1	(6.4)
					12.8	+0.6	13.5
7.9	(1.1)
Q4 2023	Investments	Divestments	Other	Extraordinary	Q2 2024	Tele2	Pro Forma
				Cash Distribution		Step 3

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H1 2024: FINANCIAL UPDATE

NAV down 5% when adding back extraordinary cash distribution, driven by significant multiple contraction in part offset by core company performance

Net Asset Value

• NAV down 4.7% to SEK 39.3bn or 140 per share
• Net cash of SEK 12.8bn or 46 per share, 13.5bn or 48 per share pro forma third step of Tele2 exit
• Public investments excluding Tele2 amounting to SEK 1.1bn or 4 per share (down 21% Q/Q)
• Unlisted portfolio down 7%, amounting to SEK 25.7bn or 91 per share (down 6% Q/Q when adding net investments)

Priced transactions (primary and secondary) in 57% of the private portfolio by value over the last twelve months, on average priced in line with our valuations in each respective preceding quarter

Since end of 2022, 74% of the private portfolio transacted in at valuation levels on average 2% above our preceding assessments

• Core growth companies down 5% to SEK 12.6bn or 45 per share

Now representing 47% of portfolio excluding Tele2

Expected to grow portfolio share further through continued operational performance, amplified by executing on near-term capital allocation priorities

Growth Portfolio Value Change by Category

Q/Q (SEKbn)

28.6	(0.3)	(0.7)	(1.4)	+0.6	26.8
Q1 2024	Public Companies	Core Companies	Other Companies	Net Investments	Q2 2024

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