KINNEVIK 3.0

BUILDING THE BUSINESSES THAT PROVIDE MORE AND BETTER CHOICE10 November 2016

I. Our Investment Strategy

II. Our Next Generation Digital Brands

− Quikr

− Qliro Financial Services

− Betterment

− Babylon

III. Our Way Forward

AGENDA

SECTION I

OUR INVESTMENT STRATEGY

4

AN 80 YEAR-OLD ENTREPRENEURIAL INVESTMENT GROUP

1936Founded Digital

consumer sectors

Market Capitalisation

Investeecompanies

Aggregate valueof investee companies

Countries covered

Assets in emerging markets

5 year annualised total shareholder return

Investee companyemployees

E-Commerce & Marketplaces

Communication

Entertainment

Financial services

Healthcare

5 ~40%

~17%~€33bn~€6bn

30+ 80+ 80,000+

Source: Kinnevik data, FactSet as of 2016-09-30

Europe60%

LatAm25%

Africa 6%

Asia 5%

Russia & SIS 3%

North America 1%

NAV by region

5

KINNEVIK’S DIGITAL JOURNEY - OVER 30 YEARS OF BUILDING WORLD CLASS COMPANIES

2010 2016

EX

TE

RN

AL

DE

VE

LO

PM

EN

TS

KIN

NE

VIK

KE

Y M

ILE

ST

ON

ES

1980 1990

British Sky Broadcasting

2000

6

OUR PORTFOLIO TODAY – THREE GENERATIONS OF BUSINESSES

2.0ESTABLISHED

E-COMMERCE & MARKETPLACES

AND OTHER

Delivering fashion online to 19 million customers in 15

markets across Europe

Delivering fashion online to 9 million customers in 24 markets around the world

>96% of

Kinnevik’s

NAV

3.0NEW GENERATION

DIGITAL BRANDSIndia’s number one classifieds

platform

2014Kinnevik invested

Nordic payment and consumer financing

solution

2014

The US’ largest automated investing

service company

2016

UK based pioneering digital healthcare service provider

2016

1.0COMMUNICATION AND

ENTERTAINMENT

Delivering mobile services to

15 million customers in 9 markets in

Europe and Kazakhstan

Delivering mobile services to

58 million customers in 14 markets

in Africa and LatAm

Delivering digital entertainment to

1.2 million subscribers in 8 markets

in Europe

<4% of

Kinnevik’s

NAV

7

BRINGING EXISTING BUSINESS MODELS TO DEVELOPING MARKETS

INTERNET PENETRATION BY REGION

Source: International Telecommunications Union, World Bank, Statista

81%84%

United States

54% 62%

Latin America

74%76%

Western Europe

35%47%

Nigeria

28% 33%

MENA

50%87%

China

26%44%

India

38%52%

Asia Pacific

2015

2020

81 Number represents only subsector wealth management AuM2 Global healthcare marketSource: Statista, Kinnevik analysis

SHIFT FROM LIFESTYLE TO LIFE-ENHANCING SECTORS IN DEVELOPED MARKETS

8,000

33,000

600

Healthcare²

FinancialServices¹

Fashion

ONLINE PENETRATION ACROSS KEY CONSUMER SECTORS IN THE US

18%

1%

Online penetration

Current Kinnevik

investments

Market size, USDbn

Lif

est

yle

Lif

e-e

nh

an

cin

g

1%

9

A SYSTEMATIC APPROACH TO IDENTIFYING NEW INVESTMENTS

GLOBAL MACRO THEMES SECTORS & GEOGRAPHIES BUSINESSES1 2 3

The starting point for our approach is global consumer macro trends, setting the stage for long-term consumer demand

• Population size and growth

• GDP growth and currency stability

• Access to the Internet

• Deployment of new technologies (e.g. AI, AV, IOT)

• Hierarchy of consumer spending patterns

• Shifts in consumer time allocation

• Consumer willingness to transact online

Based on the global macro trends, we identify sectors and sub-sectors ripe for disruption…

• Sizeable

• Analogue

• Traditional

• Poor service

• Inefficient

…in geographies with the dynamics to build disruptive businesses

• Europe

• Selected Emerging Markets

• US

In the identified sectors and geographies, we select the business we want to back based on firm investment criteria

Market opportunity - Addresses a material, everyday consumer need with a significant profit pool

Entrepreneurs - Led by a talented and experienced team

Barriers to entry - High barriers to entry protect the business model from competition

Market leadership - Well positioned relative to peers

User engagement - Cohorts suggest the business is characterised by repeat customers

Technology - Places innovation and product development at its core

Path to profitability - The unit economics are positive and sustainable

Returns – Based on realistic projections, the entry price allows for appropriate risk-adjusted returns

Reputation – Only sectors that are compatible with Kinnevik’s values and companies that subscribe to our values

Ownership – Opportunity to own a material stake in the company over time and form long-term partnership with

10

A STRUCTURED APPROACH TO BUILDING THE NEXT GENERATION SUCCESS STORIES

The Kinnevik wayBuilding long-term sustainable businesses which combine growth, profitability

and a solid governance framework

Identifying the right consumer market

segments

Developing the best strategies

Recruiting the right people

Investing in the brands

Accessing global knowhow

Perfecting the route to market

DRIVING GROWTH AND PROFITABILITY… …WHILST IMPLEMENTING RIGOROUS GRC AND CR

Governance Risk Management

ComplianceCorporate

Responsibility

11

CASE STUDY – WE HAVE SUPPORTED ZALANDO SINCE 2010 BY ADDING VALUE AND PARTICIPATING IN MULTIPLE ROUNDS

• Large addressable market with high consumer internet adoption and spending power

• Low competition in German online fashion market and true opportunity to disrupt brick-and-mortar stores

• Proven model in more developed internet markets with attractive margin profile

INVESTMENT RATIONALE VALUE CREATION: PHASE 1

¹ Post-money valuation pre-IPO² Kinnevik invested at a valuation of EUR 2.8bn and other investors at EUR 3.9bn

PHASE 2 PHASE 3

Building the platform

• Significant investments in brand awareness and distribution infrastructure

• Desktop majority of traffic

• Focus on broadening product offering and signing new brands

From warehouse to fashion destination

• Successful IPO as Europe’s leading online fashion retailer

• Shift from desktop to mobile and heavy marketing investments

• Focus on improving customer experience and fulfilment capabilities

Platform strategy: shaping the ecosystem for fashion

• Becoming the operational system connecting the fashion industry

• Creating an ecosystem benefitting customers, brands, intermediaries, bloggers etc.

• Focus on technology, a crucial competitive advantage

EVOLUTION OF VALUATION AND CAPITAL INVESTED BY KINNEVIK

0.8 1.22.8 2.8

3.9²4.9

10.0

H22010

2011 H12012

H22012

2013 At IPO Oct 2016

Capital invested by Kinnevik in each round (EURm)

47 65 129 291 100 n/a n/a

Equity value (EURbn)¹

SECTION II

OUR NEXT GENERATION DIGITAL BRANDS

13

OUR NEXT GENERATION OF BRANDS THAT ASPIRE TO BE THE LEADERS OF TOMORROW

Cash flow breakeven

MATURITY PROFILE

Concept High Potential Emerging Winners Market Leaders

VENTURE GROWTHSEED LATE STAGE GROWTH

(2008)

(2008)

(2014)

(2014¹)

¹ Qliro incubated within CDON, itself founded in 1999

14

QUIKR – DELIVERING MANAGED MARKETPLACES IN INDIA

VISIONCreate online marketplaces to bring ease and efficiency to transactions in key consumer categories characterised by fragmented supply, high offline transaction costs and friction

INVESTMENT RATIONALE

• Opportunity to enter second largest internet market through a sector that is attractive and well-understood

• Strong team with visionary entrepreneur supported by experienced management bench

• Proven track record of innovation and adaptability to deliver products relevant to local needs

• Leadership positions in key categories with largest addressable markets and highest monetisation potential

• Significantly capitalised in partnership with marquee investor base

DEVELOPMENT OF GROWTH METRIC

AND INVESTMENT

HISTORY

PARTNERSHIP WITH KINNEVIK

• Applied knowhow from classifieds to enhance focus on quality and engagement metrics

• Supported transformation to category-specific verticalisation and shift to monetisation

• Assisted in evaluation of strategic and consolidation opportunities

• Led implementation of GRC framework and processes

Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17

Q1 2014 39

Q3 2014 54

Q1 2015 94

Q2 2015 114

+145%

Partner investorsKinnevik investments (cumulative, USDm)Responses per listing

15

QLIRO FINANCIAL SERVICES - DIGITAL CONSUMER FINANCE WITH

AN E-COMMERCE DNA IN THE NORDICS

VISION Become the Nordic champion of payments and digital consumer finance

INVESTMENT RATIONALE

• Gain greater control over the e-commerce value chain and extend Qliro Group’s customer relationships

• Leverage a SEK 5bn e-commerce platform with more than four million active customers to create a significant long-term earnings opportunity in owning its own payment solutions provider

• Extend offering to non-Qliro Group companies to build long-term Financial Services play

DEVELOPMENT OF GROWTH METRIC

AND INVESTMENT

HISTORY

PARTNERSHIP WITH KINNEVIK

183

277338

528476

569607

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

Loans to the publicQ1 2011 48

Q3 2011 101

Q2 2013 230

Q4 2014 470

• Developed and built QFS under Kinnevik’s stewardship

• Provided a 100 percent subscription undertaking and guarantee in connection with SEK 650m 2014 rights issue in order to finance Qliro FS with up to SEK 300m

Selected merchants

Kinnevik investments(Qliro Group, cumulative SEKm)Loan book (SEKm)

16

BETTERMENT – TRANSFORMING WEALTH MANAGEMENT IN THE US

VISIONBetterments vision is to become their customer’s central financial relationship. They aim to democratise financial advice, making it more accessible, transparent and affordable for everyone

INVESTMENT RATIONALE

• Opportunity to build a significant consumer brand for the long-term in a very large market

• The leading pure play digital asset manager with the highest AuM, most customers and best user ratings

• Fully integrated model (brokerage, record keeping and custody in-house), providing cost advantage and enabling differentiated features

• Attractive long term customer economics based on low CAC relative to expected LTV and inverse churn

• Young, dynamic team supported by high quality, committed co-investors and independent board members

DEVELOPMENT OF GROWTH METRIC

AND INVESTMENT

HISTORY

PARTNERSHIP WITH KINNEVIK

• Deep dive analysis into market and positioning as part of the investment process

• Knowledge sharing on scaling digital consumer brands

• Support to on branding and customer segmentation

• Participation in audit and investment committees and leadership of GRC framework

Kinnevik invested USD 65m in March 2016

0.9 1.11.7

2.3 2.63.3

4.0

4.9

6.0

43 53

67 86

106 124

152 172

197

Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16

AuM (USDbn)

Customers ('000)

Partner investors

0

50

100

150

200

250

300

Jan '15 May'15 Sep '15 Jan '16 May '16 Sep '16

17

BABYLON - PIONEERING PERSONAL DIGITAL HEALTHCARE GLOBALLY

VISION

INVESTMENT RATIONALE

DEVELOPMENT OF GROWTH METRIC

AND INVESTMENT

HISTORY

PARTNERSHIP WITH KINNEVIK

Put an accessible and affordable health service into the hands of every person on earth

• $8 trillion global sector in urgent need for scalable solutions providing high quality care

• Large initial UK market opportunity with clear consume demand based on usage and user satisfaction ratings

• Strong, experienced team led by visionary founder with healthcare background

• Ground-breaking technology innovation using artificial intelligence to triage and diagnose patients

• Ability to scale end-to-end healthcare at much lower cost than traditional channels

• Ground-breaking technology innovation using artificial intelligence to triage and diagnose patients

Founders of

Founders of

Kinnevik invested GBP 10m in January 2016

• Knowledge sharing on scaling digital consumer brands in both developed and developing markets

• Assistance with international rollout strategy

• Support in fund-raising

• Supported assessment of GRC status and set up of processes

Partner investorsNumber of registrations (‘000)

SECTION III

OUR WAY FORWARD

19Source: U.S. Department of Commerce, Statista, Emergo

WE ARE ONLY GETTING STARTED IN THESE RAPIDLY EVOLVING SECTORS

Overall US Assets under Management

USD 34tn

Total US AuMUSD 34tn

Total non-retirement AuMUSD 22tn

Digital advisor market in a decadeUSD 5tn

FINANCIAL SERVICES

Digital advisor market in 2016USD 300bn

Global Healthcare Spend

USD 8tn

Global healthcare spendUSD 8tn

Estimated mobile health spend in 2020USD 60bn

HEALTHCARE

Estimated mobile health spend in 2016USD 15bn

20

OUR SWEET SPOT IS GROWTH INVESTING AT WHICH STAGE FUTURE WINNERSEMERGE BUT WE DO LOOK AT BREAK-OUT OPPORTUNITIES AT AN EARLIER STAGE

VENTURE GROWTHSEED LATE STAGE GROWTH

Breakeven point

Seed Series A

Series C

Series D

Series B

Series +

MATURITY PROFILE

Concept High Potential Emerging Winners Market Leaders

Cash flow breakeven

21

0%

500%

1000%

1500%

2000%

Chart Title

Series 1 Series 2

55 20 40

162

328

729

238 152 162

252

(117)(19) (3)

(356) (393)

(14)

(862)

(48)

(1 000)

(800)

(600)

(400)

(200)

200

400

600

800

1 000

Investments

Divestments

Net Investments

Amazon share price

A SUCCESSFUL MODEL BASED ON PRUDENT CAPITAL REALLOCATION

2007 2008 2009 2010 2011 2012 2013 2014 2015

LA

RG

ES

T

INV

ES

TM

EN

TS

LA

RG

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T

DIV

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TM

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TS

(EURm)

2016 YTD

Source: Kinnevik as of 2016-09-30

BUILDING THE BUSINESSES THAT PROVIDE MORE AND BETTER CHOICE