The AGM on 4 May 2023 approved the board’s proposal that a dividend of SEK 6.50 per share be distributed to the shareholders. The dividend will be paid in two instalments during the year, in May and November. The record date for the first dividend payment of SEK 3.25 per share is 8 May 2023. The dividend is expected to be paid out by Euroclear Sweden AB on 11 May 2023. The record date for the second dividend payment of SEK 3.25 per share is 10 November 2023. The dividend is expected to be paid out by Euroclear Sweden AB on 15 November 2023.

The AGM also resolved to authorise the board to repurchase the company’s own B shares in the period up to the 2024 annual general meeting for a maximum of SEK 3 billion.

Dividend policy

The board of directors’ intention is for the H&M group to continue to provide shareholders with a good return while ensuring that growth and investments in the business can proceed with a continued strong financial position and freedom of action. Based on this, the board of directors has proposed a dividend policy stating that the ordinary dividend over time is to exceed 50 percent of profit after tax and additionally that identified surplus liquidity – taking into consideration the capital structure target and investment requirements – can be distributed to shareholders through an extra dividend or a buyback programme.

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. It should not exceed 1.0 x EBITDA over time. Net debt/EBITDA excluding IFRS 16 effects was -0.6 (-0.7) as at 30 November 2022.

IFRS 16 Leases, which is being applied from 1 December 2019, has substantial effects on the reporting of liabilities, assets and EBITDA. However, the H&M group will continue to define the capital structure exclusive of IFRS 16 effects. The company considers this to provide a clearer picture of the actual debt/equity ratio, and it is also the measure used in internal monitoring.