PRESENTATION OF FINANCIAL RESULTS Q July 2013

Transcription

1 PRESENTATION OF FINANCIAL RESULTS Q July 2013

2 HIGHLIGHTS SECOND QUARTER 2013 FOCUS ON THE DIGITAL CONSUMER Net Asset Value SEK 55.5bn online now 30% Option to acquire 3.5% of Zalando exercised Mobile and media companies invest in digital services: Millicom 4G license in Colombia Leverage on 4G services in Tele2 MTG starts MTGx Strong balance sheet Revised dividend policy: Kinnevik aims to pay a steadily increasing annual dividend. EUR 67m invested in Rocket Internet in July 2

3 OUR VALUE DRIVERS WITH 93% OF ASSET VALUE IN MOBILE, ONLINE & MEDIA Telecom & Financial Services 54% (64%) Online 30% (17%) Media 9% (9%) Industry and Other investments 7% (10%) 3

4 OUR VALUE DRIVERS AND A FOCUS ON GROWING MARKETS SALES PER REGION* 4 *Based on figures from FY 2012 but excluding Tele2 Russia

5 TELECOM & FINANCIAL SERVICES TELECOM THE DIGITAL LIFESTYLE Millicom Mobile business model increasingly diversified Cable tapping into LatAm TV and broadband opportunity Mobile Financial Services (MFS) leveraging consumer reach Online services investing in high growth online models in emerging markets Tele2 Challenger telecom operator offering mobile and fixed telephony, broadband and related services Front row player within new technology 4G Broad range of products and services to residential and business customers 5

6 TELECOM & FINANCIAL SERVICES MILLICOM USD m Q Q Change (%) Total revenues 1,258 1,181 6 EBITDA EBITDA margins 36.8% 43.4% Mobile subscribers, end of period (m) Mobile is proving resilient Strong growth in mobile data traffic and revenues Cable & digital media building momentum organically Mobile Financial Services 10% of total mobile customer base active on MFS Online New launches and synergies 6

7 TELECOM & FINANCIAL SERVICES TELE2 SEK m Q Q Change (%) Operating revenue 7,476 7,787-4 EBITDA 1,518 1,519 0 EBITDA margins Mobile subscribers, end of period (m) Good mobile growth development with focus on Migration to post-paid and 4G services in Sweden Accelerate build-out of network in Norway Roll-out of 4G network in Netherlands Maintain market share gains in Kazakhstan Maintain focus on network roll-out and cost efficiency 7

8 TELECOM & FINANCIAL SERVICES FINANCIAL SERVICES Market with low penetration in emerging markets Convergence between online, mobile and financial services results in overlap with other Kinnevik focus areas Online and mobile as medium to deliver financial services to consumers Bayport is Kinnevik s largest investment in the financial services sector The major shareholder with 43% of the shares fully diluted Offers microcredits and financial services in Ghana, Zambia, Tanzania, Uganda, Botswana, Mozambique and Colombia Total assets USD of 440m and 261,000 customers Milvik/BIMA provides microinsurance products to mobile operators Operating in Ghana, Tanzania, Senegal, Mauritius, Bangladesh, Sri Lanka and Indonesia Insures more than four million lives 8

9 OUR VALUE DRIVERS ONLINE - ECOMMERCE AND MARKETPLACES Offline to online shift as strong as ever Growth drivers: Improving online user experience Higher confidence in payment solutions ONLINE IN KINNEVIK NAV (SEKm) Mobile activity growth High GDP and disposable income growth in emerging markets Assortment and convenience key to customer loyalty Mobile platform gaining importance Q

10 ONLINE ZALANDO - CONTINUED SALES GROWTH Net sales, EUR m +74% 372 Strong growth in Q1 and focus on operational excellence in 2013 Core market DACH reached break-even in fullyear 2012 and accounted for majority of group sales 214 New categories and countries are gaining importance fast ~ 50% of sales outside Germany ~ 50% of sales in new categories Average return rate is around 50% 2012 Q Q1 10

11 ONLINE ZALANDO IS PRESENT IN 14 EUROPEAN MARKETS WITH STRONG LOGISTICS OPERATIONS Current market presence Warehouse operations development Brieselang (Summer 2011) Flexible extension of footprint to accommodate growth zalando.es zalando.no zalando.se zalando.it zalando.fi zalando.dk zalando.co.uk zalando.nl zalando.pl zalando.be zalando.de zalando-lounge.de zalando.fr zalando.at zalando-prive.fr zalando.ch First logistics center planned and operated by Zalando Erfurt (Summer 2012) First large logistics center built to Zalando needs Designed and operated by Zalando Mönchengladbach (Summer 2013) Second large logistics center construction started in 2012 Same concept used as in Erfurt Opening in H

12 ONLINE E-COMMERCE IN EMERGING MARKETS Net Sales 2012 (SEKm) Dafiti 796 Home Lamoda 445 The Iconic 218 Jabong 156 Europe Russia & CIS India South East Asia Lazada Zalora Latin America Africa Middle East Namshi Zando Australia Jumia 21 Building strong market positions 12

13 AVITO Avito is the no 1 general online classified in Russia 10.7 million new listings per month and 37 million unique monthly visitors in Q2 Non-listing fee monetization has commenced for real Revenues of SEK 84m in Q (SEK 34m) Avito is no longer dependent on marketing Existing user base and organic growth will generate significant profit in 2013 Strong balance sheet Net cash position Strengthening of Avito.ru s position in the key Auto and Real Estate categories Continued expansion in new markets 13

14 ONLINE CDON GROUP SEK m Q Q Change (%) Total revenues Operating profit (EBIT)* neg EBIT margins -0.6% 0.1% * Excluding non-recurring costs and divested operations Continued sales growth of 4.2% year-on-year in the quarter to SEK 964 million Strong growth and strengthened market positions for the Fashion and Sports & Health segment Sport & Health segment continues to deliver solid profitability Results burdened by non-recurring items in CDON.com totalling SEK 32 million 14

15 VALUATION OF UNLISTED ONLINE HOLDINGS PREFERENCE STRUCTURE SEK million Basis for Fair Value Direct Ownership Indirect Ownership Fair Value Direct Fair Value Indirect Affected by Preference Structure Zalando GmbH Sales multiple: 2.0x 29% 9% No Bigfoot I Sales multiple: x 28% 8% Yes Bigfoot II Sales multiple: 1.3x 30% 10% Yes Home24 Sales multiple: 0.8x 24% 12% Yes Wimdu Sales multiple: 2.2x 20% 14% Yes BigCommerce Sales multiple: x 15% 13% Yes Avito Sales multiple: 9.9x 18% 14% No Sales multiples according to peer average, discounted to consider factors such as profitability and geographical market Investments in Rocket Internet are structured such that invested amounts are repaid first in case of realisation Also, amounts recently invested have preference over amounts invested earlier Indirect shares via Rocket Internet have generally been invested early. At company valuations below value in latest financing round, fair value of these shares are therefore generally lower 15

16 ONLINE ONLINE HOLDINGS Ownership Fair value as per 30 June 2013 Change in fair value Investment (SEK m) Direct Ownership Indirect equity interest Total* Invested amount Direct ownership Indirectly held Total Q First half 2013 Zalando 29% 9% 38% (Bigfoot I) Dafiti, Lamoda, partly Namshi and Jabong 28% 8% 36% Dafiti 29% 536 Lamoda 30% 530 Jabong, Namshi and cash mixed 521 (Bigfoot II) The Iconic, Zalora, partly Zando and Jumia 30% 10% 40% Home24 24% 12% 36% Wimdu 20% 14% 34% (BigCommerce) Lazada, Linio, partly Namshi Other Rocket portfolio companies Total Rocket Internet with portfolio companies 15% 13% 28% mixed mixed mixed Avito 18% 14% 32% Other online investments mixed mixed mixed Total unlisted CDON Group 25.1% 25.1% Total online investments * Not adjusted for potential dilution 16

17 OUR VALUE DRIVERS MEDIA Consumer behaviour has changed fundamentally and forever MTG has a strong content portfolio with established market positions and powerful brands Video is the growth driver Launch of MTGx to accelerate digital growth 18.8 million daily Metro readers young and urban 17

18 MEDIA MODERN TIMES GROUP SEK m Q Q Change (%) Total revenues 3,619 3,517 3 Operating profit (EBIT)* EBIT margins* * Before associates Accelerated sales growth up 6% (y-o-y) at constant exchange rates Investments on track portfolio of content offerings for consumers stronger than ever Important strategic partnerships signed with leading third party distributors Launch of MTGx to accelerate pace of digital innovation and expansion 18

19 MEDIA METRO EUR m Q Q Change (%) Operating revenue Total operating profit (EBIT) EBIT margins 2.5% 7.6% Sales down divestments in Holland and Denmark weak ad-markets in Sweden Continued sales growth in Latin America EBIT impacted by lower sales in Sweden and start-up costs in Puerto Rico 19

20 FINANCIALS KINNEVIK HAS A STRONG BALANCE SHEET SEKbn Net debt in parent company per 30 June 0.5 Investment in Rocket in July 0.6 Guidance for further investments in H up to 1.0 Leverage in parent company after expected investments is expected to be approximately SEK 2 bln Cash and available credit facilities of SEK 8.1 bln as per June 30 20

21 CONCLUDING REMARKS Continued focus on the digital consumer Online growth continues Solid performance in mobile and media companies Strong balance sheet will support execution of strategy 21

22