The board of directors has decided to propose to the annual general meeting on 7 May 2019 a dividend of SEK 9.75 per share for the 2017/2018 financial year. The board of directors proposes that the dividend is to be paid in two instalments during the year – in May and in November.
The record date proposed for the first dividend payment of SEK 4.90 per share is 9 May 2019. With this record day, Euroclear Sweden AB is expected to pay the dividend on 14 May 2019.
To be guaranteed dividend payment, the H&M shares must have been purchased no later than 7 May 2019. Ex-dividend day is 8 May 2019.
The record date proposed for the second dividend payment of SEK 4.85 per share is 12 November 2019. With this record day, Euroclear Sweden AB is expected to pay the dividend on 15 November 2019.
To be guaranteed the second dividend payment, the H&M shares must have been purchased no later than 8 November 2019. Ex-dividend day is 11 November 2019.
The board of directors is of the opinion that the proposed dividend is justifiable since it is based on the fact that the underlying business is showing gradual improvements, investments (capex) will reduce in 2019 and the company remains in a strong financial position. The dividend proposal takes into consideration the financial position and continued freedom of action of the group and the parent company, the capital structure target and the requirements that the nature and extent of the business, its risks and expansion and development plans impose on the group’s and the parent company’s equity and liquidity.
The board of directors’ intention is to provide shareholders with a continued good dividend yield while ensuring that, as in the past, expansion and investments can proceed with a continued strong financial profile and freedom of action. Based on this, the board of directors has agreed a dividend policy stating that the total dividend should exceed 50 percent of profit after tax, yet taking into consideration the capital structure target. The dividend will be paid in two instalments – one in the spring and one in the autumn.
The H&M group advocates a conservative leverage ratio, aiming for a strong capital structure with strong liquidity and financial flexibility. It is essential that, as in the past, expansion and investments can proceed with continued freedom of action.
The capital structure is defined as net debt in relation to EBITDA. Over time, this should not exceed 1.0 x EBITDA. Net debt / EBITDA was 0.3 (0.0) as of 30 November 2018.