Dividend policy and dividend proposal
The rapid spread of the coronavirus COVID-19 and the extraordinary public measures taken around the world to slow down the spread of the virus have caused an exceptional situation for people, communities and businesses. In the light of the current situation and the uncertainty about market developments, the board has on 23 March decided to withdraw its earlier dividend proposal of SEK 9.75 per share, approximately SEK 16 billion in total, and is instead proposing to the 2020 annual general meeting that no dividend is paid.
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 0.2 (0.3) as of 30 November 2019.