Q3 2024 Kinnevik AB Earnings Call Transcript
Key Points
- Kinnevik AB (KNEVF) has completed its transformation, focusing on a growth-oriented portfolio with a strong financial position.
- Core companies, representing 52% of the portfolio, have shown strong revenue growth of over 60% on average in the past 12 months.
- Spring Health, a key investment, has demonstrated significant growth and profitability improvements, with expectations to be cash flow positive in 2025.
- The company maintains a robust net cash position of SEK12.2 billion, providing a solid runway for future investments and exits.
- Kinnevik AB (KNEVF) continues to see promising developments in early-stage ventures, with potential for outsized returns, such as Aira's expansion in clean energy technology.
- The non-core portfolio faced a significant write-down, particularly with VillageMD, which was written down to zero due to uncertainties with Walgreens.
- The weakening US dollar negatively impacted the net asset value (NAV) by SEK0.7 billion.
- There is a cautious outlook on Pleo due to broader market conditions, leading to lowered expectations for 2025.
- The company has faced challenges with investments in e-commerce companies like Oda and Mathem, leading to restructuring and financial setbacks.
- Kinnevik AB (KNEVF) has limited influence over the future of VillageMD, creating uncertainty and risk in the investment.
Good morning, everyone and welcome to the presentation of Kinnevik results. And with me today is our CFO, Samuel Sjostrom; and our Director of Corporate Communications, Torun Litzen. On today's call, we will walk you through the key events during the quarter including our most recent investment activity.
I will also give you an update on our two most recent investments in Spring Health and Aira. Samuel will then cover our financial position and the development of our net asset value. Finally, I will show you the agenda for upcoming Capital Markets Day next week. And as usual, we will end up with a Q&A.
So let's start on page 4. The third quarter marks the completion of the Kinnevik transformation that we have been driving for the past six years. With the last step of the Tele2 transaction concluded, we enter our next phase with a strong financial position and a growth focused portfolio with a high performing core and several exciting early-stage companies with the potential to create significant outcomes.
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