Kinnevik AB (KNVKF) Q1 2025 Earnings Call Transcript

2025-04-24 15:51:09 ET

Kinnevik AB (KNVKF)

Q1 2025 Earnings Conference Call

April 24, 2025 4:00 AM ET

Company Participants

Georgi Ganev – Chief Executive Officer

Samuel Sjöström – Chief Financial Officer

Torun Litzén – Director-Corporate Communications

Conference Call Participants

Linus Sigurdson – DNB Markets

Derek Laliberte – ABG Sundal Collier

Presentation

Georgi Ganev

Good morning everyone. Welcome to the presentation of Kinnevik's Results for the First Quarter of 2025. I'm Georgi Ganev, Kinnevik's CEO. And with me today is our CFO, Samuel Sjöström; and our Director of Corporate Communications, Torun Litzén. On today's call, we will walk you through the key events during the quarter. Samuel will then cover our financial position, capital allocation and net asset value. Finally, I will go through our outlook and priorities for 2025 and as usual we will end with a Q&A.

But before we head into the presentation, I would like to say a few words about the uncertainty that has shaken financial markets in recent weeks. While we are accustomed to both micro and macro uncertainty, this time it stems from an unprecedented threat through global trade system. It's hard to predict the near and long term implications for our portfolio companies. They are one hand not directly impacted by tariffs or global trade flows. However, on the other hand, if the current market uncertainty develops into a broad based economic slowdown and prolonged weakness in consumer spending and investor sentiment that could of course have negative effects on our company's performance and valuation developments. We however continue to focus on what we can impact and control, supporting our companies and allocating our capital with discipline and a long-term perspective.

2025 to date, our companies continue to demonstrate robust performance, meeting our expectations on growth and margin improvements. We have a strong cash position and our portfolio is well funded with 85% invested in companies that are profitable already or funded to breakeven. This puts us in a position of strength and we know from experience that times of uncertainty and economic downturns can create opportunities. So while we remain humble and adjust for more negative scenarios ahead, we remain optimistic around the longer term.

Let's now move to the key events on Page 4. Our net asset value was down 2% in constant currencies and 8% in SEK and amounted to SEK36.2 billion, or SEK131 per share at the end of the first quarter of 2025. We ended the quarter with a net cash position of SEK10.5 billion after investing SEK800 million mainly in our core companies and selected ventures. We also released capital from three non-core financial services investments, Lunar, Sure, and XYB, in a portfolio transaction. This is totally in line with our ambition to focus the portfolio on the companies and investment strategies that have yielded the strongest returns and where we have the highest conviction looking ahead....

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