Sound Governance Structures and Economic Growth

For Kinnevik as a company, it is important to have sound governance, risk management and compliance structures in place, including clear structures, policies and processes across functions. Being a financially strong company is imperative to our role as active owners, supporting our portfolio companies towards achieving long-term sustainable and profitable growth.


Read more in our Sustainability Report 2019:

Economy (pdf)

 

Governance

Kinnevik’s Board is responsible for Kinnevik’s overall strategy, including sustainability, and is well informed about Kinnevik’s policies and procedures. The Board is supported by the Risk, Compliance & Sustainability Committee (a subset of the Board) and the Risk Committee consisting of Kinnevik’s management team and investment directors. 

Risk Management 

Kinnevik’s risk framework is outlined in the Risk Management Policy. Kinnevik’s management has established a Risk Committee that meets thrice a year to review key risks, developments since the previous meeting, the effi ciency of any mitigating actions and our overall risk appetite. The work of the Risk Committee is presented at each meeting of the Risk, Compliance & Sustainability Committee and to the Audit Committee on a periodic basis.

Compliance

Kinnevik’s compliance framework is mainly focused on compliance with the laws and regulations that govern listed companies in Sweden. Kinnevik conducts mandatory annual compliance training, including Code of Conduct and Insider Trading Rules, for all employees, as well as periodic deepdives on specifi c matters such as anti-corruption and supply chain management. 

Economic Performance

During 2019, Kinnevik’s Net Asset Value increased by 31 percent, adjusted for dividends paid, to SEK 73.3bn (70.5). Total investments for the year amounted to SEK 4.6bn (2.7). Total divestments amounted to SEK 6.2bn (1.6). Kinnevik ended 2019 in a net debt position of SEK 0.9bn (2.9), corresponding to a leverage of 1.3 (4.0) percent of portfolio value. During 2019, Kinnevik divested a 5 percent stake in Zalando, representing 17 percent of our total shareholding in the company, generating gross proceeds of SEK 5.9bn. Kinnevik also distributed its entire shareholding in Millicom to our shareholders, a value transfer of SEK 16.5bn in total.