Financial Targets

Kinnevik’s objective is to increase shareholder value, primarily through net asset value growth. In order to clarify our strategy the Board of Directors has decided to communicate financial targets. These reflect Kinnevik’s evaluation of its balance sheet structure and the return targets on the portfolio companies.

 
Attractive returns

Kinnevik’s objective is to generate a long term total return to our shareholders in excess of our cost of capital. We aim to deliver an annual total shareholder return of 12-15% over the business cycle.

Comment on outcome for 2020
Kinnevik's total return to shareholders amounted to 85% for 2020. Per 31 December 2020, the five-year annualised total shareholder return was 22% and the ten-year annualised total shareholder return was 20%.

 

Low leverage

Given the nature of Kinnevik’s investments, our goal is to carry low leverage, not exceeding 10% of Portfolio Value.

Comment on outcome for 2020
Kinnevik had a net cash position of SEK 4.8bn per 31 December 2020, corresponding to 4.5% of Portfolio Value.

 

Shareholder remuneration

In September 2019, Kinnevik resolved to amend its shareholder remuneration policy. Kinnevik’s prior objective was to pay an annual dividend growing in line with dividends received from its investee companies and the cash fow generated from its investment activities. Going forward, Kinnevik will generate shareholder returns primarily through capital appreciation, and will seek to return excess capital generated by its investments to shareholders through extra dividends.

Comment on outcome for 2020
In line with the amended shareholder remuneration policy, Kinnevik did not pay an ordinary dividend for 2020. During the year, Kinnevik paid out an extraordinary dividend of SEK 1.9bn amounting to SEK 7 per share to its shareholders.