Investment AB Kinnevik Skeppsbron 18 (Publ) Reg no 556047-9742 P.O. Box 2094 Phone +46 8 562 000 00 SE-103 13 Stockholm Sweden Fax +46 8 20 37 74 www.kinnevik.se INTERIM REPORT 1 JANUARY-31 MARCH 2011 Financial results for the first quarter Kinnevik’s net asset value 2006-2011 t 5IFOFUBTTFUWBMVFJODSFBTFEEVSJOHUIFmSTURVBS Pro forma adjusted for the acquisition of Emesco during Q3 2009. Figures in SEK m. UFSUP4&, N DPNQBSFEUP4&, N 60000 BUUIFFOEPG%FDFNCFS%VSJOHUIFMBTU 50000 NPOUIT UIFOFUBTTFUWBMVFIBTJODSFBTFECZ t ,PSTOÊTPQFSBUJOHQSPmUJODSFBTFECZUP4&, 40000 N BOEUIFPQFSBUJOHNBSHJOXBT 30000 t 5IF(SPVQTUPUBMSFWFOVFBNPVOUFEUP4&, 20000 N Q1 11 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 t /FUSFTVMUBGUFSUBY JODMVEJOHDIBOHFTJOGBJSWBMVF PGmOBODJBMBTTFUT BNPVOUFEUPBQSPmUPG4&, N DPSSFTQPOEJOHUPBQSPmUQFSTIBSFPG 4&, Market value - Major Listed Holdings Figures in SEK m. 60000 51 469 51 445 48 427 40000 20000 0 31 March 31 Dec 31 March 2010 2010 2011 w5IFmOBODJBMNBSLFUTIBWFCFFOJOnVFODFECZUIFHMPCBMVOSFTUEVSJOHUIFRVBSUFSCVUUIF WBMVFPG,JOOFWJLTBTTFUTIBTJODSFBTFEBOEUIF,JOOFWJLTIBSFJODSFBTFECZTFWFOQFSDFOU EVSJOHUIFQFSJPE8FDPOUJOVFUPTFFHPPEQSPmUHSPXUIXJUIJO,PSTOÊTBOEJOPVSUFMFDPN BOENFEJBBTTFUT%VSJOHUIFRVBSUFSXFIBWFDPOUJOVFEUPJOWFTUJOPOMJOFBOENJDSPmOBO DJOH UXPTUSPOHHMPCBMUSFOETwTBZT.JB#SVOFMM-JWGPST 1SFTJEFOUBOE$IJFG&YFDVUJWF0Gm DFSPG,JOOFWJL ,JOOFWJLXBTGPVOEFEJOBOEUIVTFNCPEJFTNPSF Events during the first quarter UIBOTFWFOUZZFBSTPGFOUSFQSFOFVSTIJQVOEFSUIFTBNF t*OUIFmSTURVBSUFS ,JOOFWJLJOWFTUFE4&,NNBJOMZ HSPVQPGQSJODJQBMPXOFST,JOOFWJLTIPMEJOHTPGHSPXUI XJUIJO0OMJOF PVUPGXIJDI4&,NJOUIF&VSPQFBO DPNQBOJFTBSFGPDVTFEBSPVOETFWFODPNQSFIFOTJWF POMJOFDPNQBOZ3PDLFU*OUFSOFUBOEJUTQPSUGPMJPDPN CVTJOFTTTFDUPST1BQFS1BDLBHJOH 5FMFDPN4FSWJDFT QBOJFT BOE4&,NJO$%0/5IJTNFBOTUIBUTMJHIUMZ .FEJB 0OMJOF .JDSPmOBODJOH "HSJDVMUVSFBOE3FOFXBCMF MFTTUIBOPOFGPVSUIPGUIFNBOEBUFPG4&,CMOTFUCZ FOFSHZ,JOOFWJLIBTBMPOHIJTUPSZPGJOWFTUJOHJOFNFS UIF#PBSEGPSJOWFTUNFOUTXJUIJO0OMJOF .JDSPmOBODJOH HJOHNBSLFUTXIJDIIBTSFTVMUFEJOBDPOTJEFSBCMFFYQP "HSJDVMUVSFBOE3FOFXBCMFFOFSHZJO IBTCFFO TVSFUPDPOTVNFSTFDUPSTJOUIFTFNBSLFUT,JOOFWJLQMBZT VUJMJTFEEVSJOHUIFmSTURVBSUFS BOBDUJWFSPMFPOUIF#PBSETPGJUTIPMEJOHT t,JOOFWJLT#PBSEPG%JSFDUPSTBOEUIF#PBSETPG.JM MJDPN 5FMFBOE.5(IBWFQSPQPTFEUPUIF"OOVBM Total return (FOFSBM.FFUJOHTJO.BZUIBUEJWJEFOETCFBQQSPWFE The Kinnevik share’s average annual total return BDDPSEJOHUPUIFGPMMPXJOH Past 30 years 1) 20% Kinnevik’s part of dividends proposed Past 5 years 9% to be paid from listed holdings Full year 2010 31% Millicom USD 1.80/share 426 1) 1) Based on the assumption that shareholders have retained their Tele2 SEK 6+21/share 3 658 allotment of shares in Tele2, MTG, Metro, Transcom and CDON. MTG SEK 7.50/share 101 Total expected dividends to be recei- New reporting structure from 2011 ved from listed holdings 4 185 'SPN ,JOOFWJLIBTDIBOHFEJUTSFQPSUJOHTUSVDUVSF Of which ordinary dividends 1 340 Proposed dividend to Kinnevik’s BOEHSPVQBMMIPMEJOHTJOUPUIFGPMMPXJOHCVTJOFTTTFDUPST shareholders SEK 4.50/share 1 247 1BQFS1BDLBHJOH 5FMFDPN4FSWJDFT .FEJB 0OMJOF 1) Based on an exchange ratio of 6.25 SEK/USD. .JDSPmOBODJOH "HSJDVMUVSFBOE3FOFXBCMF&OFSHZ5IFBD 5IFQSPQPTFEEJWJEFOETXJMMSFTVMUJOBEJWJEFOEQBZ DPVOUJOHTFHNFOUTDPOTJTUPG1BQFS1BDLBHJOH ,PSTOÊT NFOUUP,JOOFWJLTTIBSFIPMEFSTDPSSFTQPOEJOHUPBQ 0UIFSPQFSBUJOHTVCTJEJBSJFT GPSNFSQBSUPG/FX7FOUVSFT QSPYJNBUFMZPGUIFFYQFDUFEPSEJOBSZEJWJEFOETGSPN BOE1BSFOU$PNQBOZPUIFST .JMMJDPN 5FMFBOE.5( Kinnevik’s proportional part of revenue and operating result in its holdings Change compared to Reported Proportional part of Jan-March 2010 Jan-March 2011 (SEK m) Equity interest revenue EBIT revenue EBIT revenue EBIT Korsnäs 100.0% 2 135 264 2 135 264 -1% 33% Millicom 35.7% 7 007 2 013 2 502 719 13% 20% Tele2 30.5% 9 573 1 560 2 920 476 0% 1% Transcom 22.3% 1 278 22 285 5 -2% -42% MTG 20.4% 3 125 684 638 140 2% 42% Metro 46.6% 490 -4 228 -2 16% N/A CDON 22.6% 572 20 129 5 22% -47% Black Earth Farming 1) 24.9% 128 -123 32 -31 -33% N/A Other unlisted holdings 972 -39 236 -2 83% N/A Total sum of Kinnevik’s proportional part of revenue and operating result 9 104 1 573 5% 16% 1) Reported with one quarter’s delay 5IFUBCMFBCPWFJTBDPNQJMBUJPOPGUIFIPMEJOHTSFWFOVFTBOEPQFSBUJOHSFTVMUSFQPSUFEGPSUIFmSTURVBSUFS%JWFTUFEPQFSBUJPOT BTTFUT IFMEGPSTBMFBOEPOFPGGJUFNTIBWFCFFOFYDMVEFE 3FWFOVFTBOEPQFSBUJOHSFTVMUSFQPSUFECZUIFDPNQBOJFTIBWFCFFONVMUJQMJFECZ,JOOFWJLTPXOFSTIJQTIBSFBUUIFFOEPGUIFSF QPSUJOHQFSJPE UIFSFCZTIPXJOH,JOOFWJLTQSPQPSUJPOBMTIBSFPGUIFDPNQBOJFTSFWFOVFTBOEPQFSBUJOHSFTVMU$POTUBOUFYDIBOHFSBUFT IBWFCFFOVTFEXIFOUSBOTMBUJOHSFWFOVFBOE&#*5GSPNFBDIDPNQBOZTSFQPSUJOHDVSSFODZJOUP4XFEJTILSPOPS 5IFQSPQPSUJPOBMTIBSFPGSFWFOVFTBOEPQFSBUJOHSFTVMUIBTOPDPOOFDUJPOXJUI,JOOFWJLTBDDPVOUJOHBOEJTPOMZBEEJUJPOBMJOGPSNBUJPO Financial overview Financial overview OFUEFCUBU.BSDI 4&, NSFMBUFEUPFYUFSOBM OFUEFCUXJUIJO,PSTOÊTPSXJUITIBSFTJO,PSTOÊTBTDPM Consolidated earnings MBUFSBM 5IF(SPVQTSFWFOVFBNPVOUFEUP4&, NEVSJOHUIF -FWFSBHFXJUIJO,PSTOÊTBOEMJTUFEIPMEJOHTIBTEFWFMP RVBSUFS DPNQBSFEXJUI4&, NJOUIFQSFDFEJOHZFBS QFEBDDPSEJOHUPUIFDIBSUTCFMPX 5IF(SPVQTPQFSBUJOHQSPmUJODSFBTFEUP4&,N 5IFJODSFBTFJTNBJOMZBUUSJCVUBCMFUP,PSTOÊT Listed holdings 5IFDIBOHFJOGBJSWBMVFPGmOBODJBMBTTFUTBNPVOUFEUP Debt SEK m (grey bar) and Asset Value SEK m (red bar) OFHBUJWF4&,N PGXIJDIBMPTTPG4&,N Line shows Debt as percentage of Asset Value QSPmUPG XBTSFMBUFEUPMJTUFEIPMEJOHTBOEBMPTTPG 60000 14% 4&,N QSPmUPG UPVOMJTUFEmOBODJBMBTTFUT 50000 12% 10% /FUQSPmUBNPVOUFEUP4&,N DPSSFTQPO 40000 EJOHUP4&, QFSTIBSF 8% 30000 6% 20000 The Group’s cash flow and investments 4% 5IF(SPVQTDBTInPXGSPNPQFSBUJPOTFYDMVEJOH 10000 2% DIBOHFJOXPSLJOHDBQJUBMBNPVOUFEUP4&,N 0 0% EVSJOHUIFRVBSUFS8PSLJOHDBQJUBMJODSFBTFECZ4&,N EFDSFBTFPG 2007 Q22007 Q32007 Q42008 Q12008 Q22008 Q32008 Q42009 Q12009 Q22009 Q32009 Q42010 Q12010 Q22010 Q32010 Q42011 Q1 *OWFTUNFOUTJOUBOHJCMFBOEJOUBOHJCMFmYFEBTTFUT BNPVOUFEUP4&,N EVSJOHUIFQFSJPE PGXIJDI Korsnäs 14% 4&,N XJUIJO,PSTOÊT 12% Net Debt SEK m (grey bar) and EBITDA SEK m (red bar) *OWFTUNFOUTJOTFDVSJUJFTEVSJOHUIFQFSJPEBSFTIPXO 10% Line shows Net Debt in relation to EBITDA (right axis) JOUIFUBCMFTCFMPX 8% 8000 10 x 9 6%x Amount 7000 8 x 1 Jan-31 Mar 2011 Financial instrument (SEK m) 6000 4% 5000 7 2%x 6 x 4000 0% Subsidiaries 5 5 x 3000 5 4 x 2000 Other securities 3 x 1000 2 x Online 0 1 x CDON shares 48 Rocket Internet with portfolio shares 351 2007 Q22007 Q32007 Q42008 Q12008 Q22008 Q32008 Q42009 Q12009 Q22009 Q32009 Q42010 Q12010 Q22010 Q32010 Q42011 Q1 companies Other Online investments 24 Microfinancing 7 "MMMPBOTIBWFmYFEJOUFSFTUUFSNTPGOPMPOHFSUIBO 10 x 430 UISFFNPOUIT5IFMPBOTDBSSZBOJOUFSFTUSBUFBDDPSEJOHUP9 x 8 x 4UJCPSPSTJNJMBSCBTFSBUFXJUIBOBWFSBHFNBSHJOPG 1 Jan-31 Mar 2010 7 x 6 x Paper & Packaging "U.BSDI UIFBWFSBHFSFNBJOJOHEVSBUJPOGPSBMM DSFEJUGBDJMJUJFTBNPVOUFEUPZFBST 5 x Bomhus Energi shares 33 4 x Online 0GUIF(SPVQTJOUFSFTUFYQFOTFTBOEPUIFSmOBODJBM 3 x Rocket Internet with portfolio DPTUTPG4&,N JOUFSFTUFYQFOTFTBNPVOUFEUP4&,2 x shares/warrants 364 companies N 5IJTNFBOTUIBUUIFBWFSBHFJOUFSFTUSBUFGPSUIF1 x Avito capital contribution 5 RVBSUFSXBT DBMDVMBUFEBTJOUFSFTUFYQFOTFJO Agriculture SFMBUJPOUPBWFSBHFJOUFSFTUCFBSJOHMJBCJMJUJFT Black Earth Farming shares 63 5IF(SPVQTCPSSPXJOHJTQSJNBSJMZBSSBOHFEJO4&, 465 0OBOBOOVBMCBTJT UIFOFUnPXJOGPSFJHODVSSFODJFT FYDMVEJOHEJWJEFOETSFDFJWFE JTBOFUJOnPXPGBCPVU4&, The Group’s liqudity and financing N DPNQSJTFENBJOMZPG,PSTOÊTTBMFTJO&63 5IF(SPVQTBWBJMBCMFMJRVJEJUZ JODMVEJOHTIPSUUFSNJOWFTU NFOUTBOEBWBJMBCMFDSFEJUGBDJMJUJFT UPUBMMFE4&, NBU .BSDIBOE4&, NBU%FDFNCFS 5IF(SPVQTJOUFSFTUCFBSJOHOFUEFCUBNPVOUFEUP4&, NBOE4&, NPOUIFTBNFEBUFT0GUIFUPUBM Book and fair value of assets Equity Voting Book value Fair value Fair value Total interest interest 2011 2011 2010 return Mkr (%) (%) 31 Mar 31 Mar 31 Dec 2011 Paper & packaging Korsnäs Industrial and Forestry 100 100 6 882 10 018 1) 9 774 1) Bergvik Skog 2) 5 5 569 569 556 Interest bearing net debt relating to Korsnäs -5 402 -5 402 -5 575 Total Paper & packaging 2 050 5 185 4 755 Telecom & services Millicom 35.7 35.7 22 834 22 834 24 309 -6% Tele2 30.5 47.7 19 755 19 755 18 915 4% Transcom 22.3 44.5 307 307 333 -8% Total Telecom and services 42 896 42 896 43 557 Media MTG 20.4 48.6 6 479 6 479 6 009 8% Metro shares 46.6 42.4 283 283 285 -1% Metro warrants 3) 388 388 374 4% Metro subordinated debentures 234 278 268 Total Media 7 384 7 428 6 936 Online Rocket Internet with portfolio companies 1 732 1 732 1 407 Avito (directly and through Vosvik) 56 274 274 274 CDON 22.6 22.6 513 513 420 10% Other Online investments 107 107 95 Total Online 2 626 2 626 2 196 Microfinancing Bayport 37 4) 37 307 307 332 Other Microfinancing investments 22 22 16 Total Microfinancing 329 329 348 Agriculture Black Earth Farming 24.9 24.9 886 886 824 8% Rolnyvik 100 100 206 250 250 RawAgro 21 21 21 Total Agriculture 1 113 1 157 1 095 Renewable energy Latgran 75 75 132 257 259 Vireo 11 11 8 Total renewable energy 143 268 267 Interest bearing net debt against listed holdings -2 187 -2 187 -1 706 Other assets and liabilities 44 44 65 Total equity/net asset value 54 398 57 746 57 513 Net asset value per share 208.35 207.51 Closing price, class B share 147.00 137.00 7% 1) Consensus among analysts covering Kinnevik. 2) Corresponding to 5% of the company’s equity. 3) Warrants in Metro are valued at fair value and included in change in fair value of listed holdings. 4) After warrants have been utilised. Kinnevik’s holdings Paper & Packaging ,PSTOÊTPQFSBUJOHQSPmUJODSFBTFEUP4&,NGPS UIFmSTURVBSUFSPGUIFZFBS