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ANNUAL REPORT 2019 WorldReginfo - 3f1384be-daaa-447b-8f56-31dc691f1487 WE BUILD LEADING DIGITAL BUSINESSES WorldReginfo - 3f1384be-daaa-447b-8f56-31dc691f1487 Kinnevik AB ∙ Annual & Sustainability Report ∙ 2019 CONTENTS 02 Chief Executive’s Review 04 Sustainability Report 34 Board of Directors’ Report 39 Corporate Governance Report 45 Group Financial Statements & Notes 68 Parent Company Financial Statements & Notes 76 Audit Report 9 enitions an Alternative erorane easures 0 Annual eneral eetin 2020 or an inept esription o Kinnevik inluin our stratey tea an investee opanies please reer to www.kinnevik.com e Annual Report or Kinnevik AB publ 092 onsists o a Boar o iretors Report nanial stateents an oter inoration on paes 0 e Sustainability Report on paes as been subet to a liite assurane revie e annual aounts an onsoliate aounts on paes 0 ave been auite 1 WorldReginfo - 3f1384be-daaa-447b-8f56-31dc691f1487 Kinnevik AB ∙ Annual & Sustainability Report ∙ 2019 S R Dear Shareholders, 2019 as araterie by stron perorane in our lare liste opanies an i ativity in our portolio inluin ne an olloon investents in eitin rot opanies e aelerate our pivot toars rot by istributin illio to our sareolers an opletin a sellon o a perent stake in alano to nane our ontinue investent oentu urin te year e ave also inrease our eorts to utureproo our opa- nies by supportin te interation o sustainability in teir ore business oels e enter 2020 it a stron ounation to eeute on our stratey ull Year Results During 2019, Pivoting our Portfolio Towards Growth Kinnevik’s Net Asset Value amounted we released n eeber te istribution o our illio sa- to SK bn or SK2 per sare reolin to our sareolers as onlue is SEK 9.1bn from at te en o 2019 an inrease o siniant istribution o value to our investors 1 perent over te year inluin our more mature reinores our eiation to alloate a larer sare iviens pai e A evelop- assets through o our portolio to isruptive an tenoloyena- Fent as riven partiularly by stron sare prie divestments and ble rot an venture businesses rou te perorane in alano an ele2 dividends, cor- istribution te ontribution o tese businesses responding to in Kinneviks portolio inrease aterially Our Large Listed Companies over 12 percent urin 2019 e release soe SK 91bn ro alano is our larest olin an a ornerstone o of the portfolio our ore ature assets trou ivestents an our rot portolio ile te opanys rot we entered the iviens orresponin to over 12 perent o te as been truly ipressive sine our rst investent year with. portolio e entere te year it About a tir o alost 10 years ao e believe alano ill on- te apital as reinveste into our eistin porto- tinue to benet ro its lare arket opportunity lio an an aitional SK 1bn as investe into In September we decreased our stake from 31 to to ne businesses illae an ate it 26 percent to maintain our own pace of invest- tese transations e ave iprove te akeup ent into private rot opanies alano ts o our portolio an ae it ore balane bot suarely it our stratey an e ully support in ters o aturity prole an setor eposure te opanys abition to ontinue investin in rot to beoe te startin point or asion Doubling Down in Healthcare olloin its 201 erer it o e ele2 e ealtare inustry is strulin to eliver a- is te leain eobile operator in Seen essible eetive an aorable are to all e are an te Baltis proviin onnetivity an ii- optiisti tat onsueriation ne tenoloy tal servies in our Seis oe arket it its an innovation in payent oels an yiel better stron as onversion isipline isposals o ore aessible an loer ost are urin te nonore operations an ous on aintainin year e ouble on in our ealtare porto- an eient apital struture ele2s sareoler lio it ollo on investents in Babylon ear reuneration is uellin te rot in soe o our an ivono an a ne investent in illae less ature opanies ile proviin stability a leain S base provier o priary are At to our portolio as a ole te en o 2019 te value o our ealtare port- olio aounte to SK bn orresponin to 9 percent of our portfolio compared to 2 percent in 2 WorldReginfo - 3f1384be-daaa-447b-8f56-31dc691f1487 Kinnevik AB ∙ Annual & Sustainability Report ∙ 2019 201 an 0 perent in 201 e are onvine apital enerate by our investent ativities to tat tese opanies are only at te beinnin o sareolers trou etra iviens n tis on- teir rot ourneys tet te ivien in kin o illio orrespone to SEK 60 per Kinnevik share when the distribution Taking On the Nordic Food Market as oplete in te beinnin o eeber Anoter eitin investent tee in 2019 as our newly established leadership position in the Nordic Future-Proofng Our Portfolio online roeries arket avin been istorially As onsuer beaviours are sitin aross te oinate by lare inubents it stron arket orl Kinnevik believes tere is a real opportunity positions te setor is on te vere o siniant or businesses puttin sustainable evelopent at transoration e starte it an investent in te ore o teir business oel n ay 2019 e te larest online roer in oray Kolonial in adopted a Diversity & Inclusion Framework to drive 201 an in te beinnin o 2019 e investe ane itin Kinnevik an our portolio not only SK 09bn into ate te Seis arket leaer ro an euality stanpoint but ost iportantly urin te year e ave aterially strente- ro a business an perorane perspetive ne ates leaersip tea inluin irin Read more about the Framework and our four a ne e tea is eiate to iprovin overarin tarets on pae 119 te opanys ustoer oerin rive eieny Soetin e are very prou to note as an ains an steer te opany toars a stron 31% oner is alanos ne sustainability stratey laun- lonter rot traetory e in 2019 t is an abitious stratey settin out te opanys bol vision o bein a sustainable Financial Position and fashion platform with a net-positive impact on pe- Shareholder Renumeration ople an te planet alano also set ne iversity e ene 2019 it a stron nanial position tarets or its top leaersip levels epasiin an net ebt o SK 09bn or 1 perent o port- Our NAV increased te nee or te opany to reet its ustoer olio value enablin us to arry out our apital by 31% during 2019 base any o te opanies in our portolio ave realloation plan or te oin years As o- ae siniant proress in utureproon teir uniate in 2019 rater tan payin an orinary businesses by interatin soun overnane stru- ivien to our sareolers oin orar e tures ensurin soial responsibility aross ierent ill enerate sareoler returns priarily trou aspets an takin easures to reue teir en- capital appreciation and will seek to return excess vironental ipat Rea ore about Kinneviks and our portfolio companies’ efforts in the 2019 Sustainability Report Concluding Remarks it a portolio onsistin o a ier sare o We ended 2019 rot opanies eer but larer ne invest- ents siniant apital eploye into te ealt with a strong are setor an a bol step into te ori oo fnancial position spae e ave eeute on te priorities tat e and net deBt of ilite at te beinnin o te year ookin SEK 0.9Bn or 1.3 orar e ill aintain our pae o investent READ MORE percent of port- and deploy our capital systematically into the folio value, ena- leain businesses o toorro e epet to Bling us to carry invest slitly less apital in 2020 tan in 2019 out our capital but enou to ontinue our transoration ank re-allocation plan you our sareolers or your ontinue support for the coming on tis eitin ourney years. Georgi Ganev Chief Executive Offcer Doubling Down in Healthcare: ur ealtare portolio ene te year at SK bn 3 WorldReginfo - 3f1384be-daaa-447b-8f56-31dc691f1487 Kinnevik AB ∙ Annual & Sustainability Report ∙ 2019 SA B ARA BAR The consumers are in charge. At Kinnevik e vie sustainability as a business opportunity n reent years tere as been a siniant sit in onsuer beaviour toars buyin prouts an servies tat are proue in a sustai- nable anner e inrease onsuer ous on sustainability reates oppor- tunities or tose opanies tat an eet tese inrease epetations t is our responsibility as an active owner to put sustainable business development at te top o te aena at our investee opanies an ake sure tey seie te opportunities arisin ro tis e truly believe tat to be a lonter su- essul opany you nee to be part o te solution not te proble The Decade of Delivery Companies in Sustainability Performance 2019 201 arke an inetion point lobally as o- the top quartile urin te year e ave put a lot o eort into vernents aross te orl aree on a opre- evelopin sustainability roaaps or te ten for gender ensive raeork or sustainable evelopent opanies e investe in urin 201 As or all naely Aena 200 an te s Sustainable diversity are 21% early stae opanies te allene is to balane evelopent oals te lobal oals ey more likely to rot it sustainability initiatives A key ous are a shared blueprint for peace and prosperity outperform on area has been the implementation of Kinnevik’s or people an te planet no an in te uture proftability. Diversity & Inclusion Framework and many of our it ten years let until 200 2020 starts o at opanies ave soe lear proress bot on i- as been alle te eae o elivery McKinsey, versity an in reatin a ore inlusive orkplae One central aspect of the Global Goals is that 2018 In response to the climate crisis many companies tey reonie tat lonter sustainable eve- are also takin eisive ation to reue teir li- lopent ust o aninan it strateies tat ate ipat nvironental aspets ill be a key buil eonoi rot All levels o soiety are ous area or Kinnevik in 2020 an onars epete to ontribute to te oals overnents In the fourth quarter of 2019 our portfolio com- ivil soiety an businesses As an oraniation e pany uikr an online lassies plator operatin ave ene i role e ant to play in 200 in nia isovere