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 of has decided to communicate financial targets. These reflect Kinnevik’s evaluation of its balance sheet structure and the criteria on which dividend payments to shareholders are based as well as 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 2017
Kinnevik's total return to shareholders amounted to 31% for 2017. The five-year annualised total shareholder return was 21% per 31 December 2017.

 

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 2017
Kinnevik had a net debt position of SEK 1.1bn per 31 December 2017, corresponding to a leverage of 1%.

 

Increasing shareholder remuneration

Kinnevik aims to pay an annual dividend growing in line with dividends received from its investee companies and the cash flow generated from its investment activities. Kinnevik will make share buybacks when the Kinnevik share trades at a significant discount to their intrinsic value, as perceived by Kinnevik, and the company has significant net cash, taking into consideration its dividend expectations, net investment plan and operating costs.

Comment on outcome for 2017
Kinnevik’s Board of Directors recommends an ordinary dividend of SEK 8.25 per share for 2017, a yearly increase of 3.1%, and equivalent to a dividend yield of 3.0%. The dividend is subject to approval at the Annual General Meeting in May 2018.