Kinnevik AB

Good day and thank you for standing by. Welcome to the Shenevic First Quarter Report 2025 conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be the question and answer session. To ask a question during the session, you need to press star 11 on your telephone keypad. You will then hear an automatic message advising your hand is raised. To withdraw a question, please press star 11 again. Please be advised that this conference is being recorded. I would now like to hand the conference over to our first speaker today, Georgi Ganev, CEO. Please go ahead.

Thank you, and good morning, everyone. Welcome to the presentation of Kinevix Result for the first quarter of 2025. I'm Georgi Ganev, Kinevix CEO, and with me today is our CFO, Samuel Sjöström, and our Director of Corporate Communications, Trond Lutzen. 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 to the global trade system. It's hard to predict the near and long-term implications for our portfolio companies. They are, on 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 portfolios well-funded, with 85% invested in companies that are profitable already or funded to break even. 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 four. Our net asset value was down 2% in constant currencies and 8% in SEC and amounted to 36.2 billion SEC or 131 SEC per share at the end of the first quarter of 2025. We ended the quarter with a net cash position of 10.5 billion after investing 800 million mainly in our core companies and selected ventures. We also released capital from three non-core financial services investments, Lunar, Shor, 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. Expected proceeds amount to 65.5 million euros, representing a single-digit discount in local currencies to last quarter's NAV. Half of these proceeds, however, are conditioned and on the company's hitting return future criteria. Sami will go through the numbers in detail shortly. I will get back to the performance of our core companies and MUSE new financing shortly, but I want to spend a minute on Transparent and its acquisition of health benefit platform Acculate. The $621 million transaction is a good example of how weaker public markets can create market opportunities. The combination creates one of the largest independent tech-enabled healthcare platforms in the U.S. And the financing was led by our co-investor, General Catalyst, with participation from us, other existing investors, and from new investors. The combined organization will provide a one-stop shop for 20 million members and more than 1,700 employer and health plan customers. TransCaren's CEO and founder, Glenn Tullman, is well known to us as he previously led Livongo, which was acquired by virtual care provider Teladoc in 2020. Bled himself and his firm, 62 Ventures, co-led Transcarant's funding round, financing this acquisition. Enclosing a transaction of this size and in this market speaks to the great demand to improve the U.S. healthcare system, the growing momentum for value-based care, and the quality of Transcarant's and Accolade's combined offerings. As a final but very important highlight this quarter, it is my pleasure to note that Cinevic's nomination committee has proposed Kristina Stambeck to rejoin the board as our new chairman. Kristina previously served on the Cinevic board for 16 years. She has remained a highly engaged lead shareholder in the years since and is now bringing with her wealth of experience and a wide network. In addition, the nomination committee proposes Camilla Giesecke, Henrik Lundin, and Ruben Ritter as new board members, adding valuable strategic, operational, and capital allocation competencies. I and the full team at Kinevik are much looking forward to working with our new board. I would also like to extend a heartfelt thank you to James Anderson and the other board members who are not seeking re-election for many rewarding discussions and great collaboration.

Let's now turn to page five.