H&M Hennes & Mauritz AB Class B · OMXSTO:HM_B
H&M Hennes & Mauritz AB Class B — Shareholder Meeting (October 2010)
16 slides from H&M Hennes & Mauritz AB Class B's shareholder meeting presentation, Oct 20, 2010
Slide 1: Welcome to the Extraordinary General Meeting of H & M Hennes & Mauritz AB
Welcome to the Extraordinary General Meeting of H & M Hennes & Mauritz AB 20 October 2010 Proposed Incentive Program
Slide 2: Over 76,000 employees around the world
Over 76,000 employees around the world Markets in 2009 New markets in 2010 (South Korea, Turkey and, via franchise, Israel) New markets in 2011 (Croatia, Romania and, via franchise, Jordan and Morocco) Over 76,000 employees around the world It is now 63 years since the first H&M store opened in Väst
Slide 3: The spirit of H&M
The spirit of H&M The spirit of H&M – our culture Our employees all contribute to making H&M what it is today. We have a strong corporate culture – the spirit of H&M – that is based on simplicity, a down‐to‐earth approach, entrepreneurship, team spirit, straight lines, common sense and a belief in i
Slide 4: H&M Incentive Program
H&M Incentive Program Covers all employees in all countries Aims: – to show appreciation – to encourage long-term commitment – to promote future recruitment – to strengthen H&M as an attractive employer Long-term What we want to do – aims and objectives Our employees are the key to H&M’s succe
Slide 5: Guiding principles of the Incentive Program
Guiding principles of the Incentive Program Fair Long-term Simple The incentive programme has a number of guiding principles. Fair. Firstly, the basic concept is to create an incentive programme that is ”the same for everyone”, which means that all employees of all the brands throughout the H&
Slide 6: Establishing a foundation
Establishing a foundation The H&M Incentive Program Foundation will be established Stefan Persson and family will donate 4,040,404 H&M shares worth around SEK 1 billion to the foundation How we want to do it – establishing a foundation A Swedish foundation, the H&M Incentive Program Foundation,
Slide 7: Future transfers to the foundation
Future transfers to the foundation The foundation shall normally receive an annual transfer from H&M – starting in conjunction with the 2011 dividend – which is to be invested in H&M shares The transfer to the foundation will be an amount equal to 10% of the increase in dividend The maximum tr
Slide 8: Exceptional situations for transfers
Exceptional situations for transfers In years in which there is no increase in dividend the Board may propose to the AGM that a transfer nonetheless be made to the foundation in order to reward employees In years in which the dividend is disproportionately high the Program has a ceiling, which i
Slide 9: Function of the foundation
Function of the foundation The foundation shall – benefit H&M’s employees – have a board appointed by the Board of H&M – invest its funds in H&M shares The foundation’s shareholding shall never exceed 5% of the total number of shares The foundation – manages the funds – deals with payouts How
Slide 10: Estimated historical net cost
Estimated historical net cost – if the Incentive Program had been introduced in 2006 The approximate net cost of the Program for each year would have been: 2006 SEK 92 million 2007 SEK 123 million 2008 SEK 153 million 2009 SEK 92 million 2010 SEK 31 million The approximate net cost of the Program
Slide 11: Qualification for the Incentive Program
Qualification for the Incentive Program All employees qualify according to the same basic principle The qualification period is five years It is estimated that around 30,000 – 35,000 employees will initially qualify Long-term commitment is key How employees will participate in the foundation
Slide 12: Payouts
Payouts The basic principle is that payouts may be made from the age of 62; however, a payout may also be made after 10 years of employment (but no earlier than 2021) At 62 years of age employees can choose to receive their payout: – in instalments over five years, or – as an immediate payout ….
Slide 13: Change in value
Change in value The value of the units in the foundation will be based on: – the size of the transfers made – the change in the value of the foundation’s shares in H&M – dividends on the foundation’s shares in H&M The employee will receive a statement of the current value once a year The change
Slide 14: Incentive Program – summary
Incentive Program – summary Long-term All employees of the H&M Group qualify according to the same basic principle Encourages employees’ long-term commitment Employees’ long-term commitment benefits the shareholders Summary The incentive programme covers all employees of the H&M Group in all
Slide 15: H&M Incentive Program
H&M Incentive Program
Slide 16: H & M Hennes & Mauritz AB
& H &M Hennes & Mauritz AB
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