Kinnevik’s objective is to increase shareholder value, primarily through net asset value growth. In order to clarify Kinnevik’s strategy the Board of Directors of Kinnevik has decided to communicate financial targets. These reflect Kinnevik’s evaluation of its balance sheet structure, the criteria on which dividend payments to shareholders are based as well as the return targets on the portfolio companies.
Dividend policy
Kinnevik’s dividend policy is to pay out more than 85% of ordinary dividends received from the listed holdings during the same year. Kinnevik's ambition is to continue to generate a progressive annual dividend for its shareholders.
The authority to repurchase Kinnevik's own shares will be utilized when the anticipated total return to shareholders through such a program is deemed to be more attractive than other potential investments.
Balance sheet
Leverage in Kinnevik should be used as a tool for maximizing long-term shareholder return. The different targets are:
(i) Korsnäs: to maximize return on invested capital, the leverage against Korsnäs shall be relatively high, which in today's market environment means a leverage of at least 3x EBITDA.
(ii) Listed share portfolio: To have financial flexibility in the parent company, the goal is to have no or a low leverage against the listed share portfolio.
Return target
The target is that the average yearly internal rate of return (IRR) on all investments in the portfolio should reach ar least 15% given the current structure of the portfolio.