Kinnevik: Year-end release 2005

12/31/2005 8:00 AM

  • The market value of the Group's holdings of listed securities increased by 20% during the year (based on share portfolio as per 31 December), equal to SEK 4,380 million including dividends received, and amounted on 31 December 2005 to SEK 25,692 million.
  • Including the increase in the fair value of financial assets and result from discontinued operations (Invik and Korsnäs Packaging), the Group reported a profit after tax of SEK 4,097 million (loss of 1,417).
  • The profit per share for continuing operations was SEK 16.75 (loss of 6.04).
  • Revenue for the year amounted to SEK 4,618 million (4,600).
  • Korsnäs Industrial's operating profit during the year amounted to SEK 314 million (656). Earnings for the first nine months of 2005 were affected by the rebuild of the PM4 paper machine and a maintenance stoppage, amounting to approximately SEK 185 million. In addition, earnings in the fourth quarter of 2005 were charged with a provision of SEK 69 million for severance payments in the reduction of 80 full-year positions within the framework of the ongoing efficiency enhancement program.
  • In November Korsnäs entered into an agreement with Sveaskog for the acquisition of its subsidiary AssiDomän Cartonboard ("Frövi") for a total consideration of SEK 3,650 million in cash on an enterprise value basis. The acquisition fits well into Korsnäs' successful operation within advanced highly refined board and paper products for the packaging industry. The integration process is expected to produce annual run-rate synergies in the area of SEK 150 million. The transaction is subject to approval by competition authorities and is expected to be finalized in the first half of 2006.
  • On 19 January 2006, Kinnevik announced that as the largest shareholder in Millicom it supports the decision by Millicom's Board to review strategic options for the company. The review was in response to Millicom having been contacted by a large number of potential acquirers of the company. When any additional significant information is available, it will be announced.
  • The Board proposes that the Annual General Meeting decide on a cash dividend amounting to SEK 1.60 per share.
  • The recalculation of the comparative figures for 2004 to conform with IFRS is described in appendix 1 and can also be found on the Company's website, www.kinnevik.se, under Investor Relations/Accounting Principles.
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