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 2019
Kinnevik's total return to shareholders amounted to 40% for 2019. The five-year annualised total shareholder return was 9% and the ten-year annualised total shareholder return was 16%, both per 31 December 2019.

 

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 2019
Kinnevik had a net debt position of SEK 0.9bn per 31 December 2019, corresponding to a leverage of 1.3% 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 2019
In line with the amended shareholder remuneration policy, Kinnevik did not pay any dividend for 2019.