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 latest Sustainability Report:

Sustainability Report

 

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 Audit & 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 the Audit & Sustainability Committe's meetings. 

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 2020, Kinnevik’s Net Asset Value increased by 52 percent, adjusted for dividends paid, to SEK 111.7bn (73.3). 

Total investments for the year amounted to SEK 2.3bn (4.6). whereof SEK 1.2bn into five new growth companies and SEK 1.1bn in follow-on investments in the high-performing businesses in our unlisted and early growth portfolio, in line with our capital allocation framework.

Total divestments amounted to SEK 8.9bn (6.2) whereof SEK 6.7bn from a sell-down of a 4.4% stake in Zalando and SEK 1.2bn in cash proceeds from the merger transaction between Teladoc and Livongo, where we also received shares in Teladoc at a value of SEK 12.8bn.

Kinnevik ended 2020 in a net cash position of SEK 3.0bn (-0.9).

Kinnevik's annualized Total Shareholder Return (TSR) per 31 December 2020 was 85% for the last year, 22% for the last five years, 20% for the last ten years and 16% for the last thirty.