The May 6, 2021 AGM approved the board’s proposal that no dividend be paid and that the amount at the disposal of the meeting be carried forward.

Dividend comment, from the nine-month report published on 30 September 2021

There has been no resolution on a dividend since spring 2019. A dividend proposal in January 2020 was withdrawn in March 2020 due to the pandemic. The board of directors is now proposing that a cash dividend of SEK 6.50 per share is paid in November 2021. This is based on significantly improved profitability, a strong financial position with financial net cash of SEK 24,874 m, more stable market conditions and a good outlook. Even after the dividend now proposed, the company will be financially strong and able to continue investing in the customer offering and the business, thereby strengthening its position further. An extraordinary general meeting will be held on 28 October 2021; see separate press release for more information.

Capital Structure

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 0.0 (0.2) as of 30 November 2020.