The Hemtex share

Since October 6, 2005, the Hemtex share has been listed on the Mid Cap list of the NASDAQ OMX Stockholm exchange.

The share is traded under the symbol HEMX and included in the SX25 index for Consumer Discretionary items.

Share trend 2009

After a weak start, a powerful recovery occurred on stock markets worldwide during 2009. A strong recovery occurred in the Hemtex share price in March and April, resulting in a total share price increase of 110% for the full year, compared with a rise of 46.6% for the OMXS index, which reflects the performance of the exchange as a whole. During the abbreviated fiscal year from May 1 to December 31, however, the Hemtex share price remained unchanged. During the abbreviated fiscal year, the lowest price quoted was SEK 24.20 on July 9 and the highest price was SEK 36.60 on November 19. At the end of the fiscal year, the Hemtex share price was SEK 26.40, corresponding to market capitalization of SEK 1,084 M (514).

Share capital

On December 31, 2009, the share capital in Hemtex AB amounted to SEK 102.7 M distributed among 41,072,360 shares, each with a quotient value of SEK 2.50. Each share entitles the holder to one vote at the Annual General Meeting, and all shares have equal rights to the company’s assets and profits.

Ownership structure

Hemtex had 3,228 shareholders on January 31, 2010. Most of the shareholders, 2,796, owned 1,000 or fewer shares. The proportion of institutional ownership amounted to 93.7%, while foreign ownership amounted to 8.9%.

Members of Hemtex’s Group management owned a total of 4,250 Hemtex shares on January 31, 2010. ­Hemtex Board members owned 12,600 shares.

New issue during 2009

At an Extraordinary General Meeting on April 21, 2009, the Board of Directors’ earlier decision regarding a new share issue in Hemtex AB was approved. On the record date of April 24, shareholders in Hemtex were entitled to a subscription right for each share held, and five subscription rights entitled the holder to subscribe for two new shares at a price of SEK 14 per share. The subscription period for the new issue was April 29 to May 13, 2009 and the issue was fully covered by subscription pledges and guarantees from Hemtex’s largest shareholders. Since the new issue was oversubscribed, the guarantee pledges that had been made did not need to be used. The new issue provided Hemtex with about SEK 164 M before issue costs.

Hakon Invest acquires shares in Hemtex AB

At the end of the preceding fiscal year, on April 28, 2009, Hakon Invest AB submitted a cash tender offer to the shareholders of Hemtex AB in compliance with the Swedish rules for mandatory takeover offers. Hakon Invest offered SEK 23 in cash per share together with an add-on premium of SEK 4 per share, which would be payable if Hakon Invest reached a shareholding exceeding 50% of the shares and votes in Hemtex AB. On June 18, 2009, Hakon Invest raised the consideration of the offer to SEK 27 in cash per share, with no possibility to receive any additional premium. As a result of the above offer and additional acquisitions in the market, Hakon Invest increased its shareholding in Hemtex from 34.6% on April 30, 2009 to 68.5% on December 31, 2009. Since June 30, 2009, Hemtex AB is a subsidiary of Hakon Invest AB.

Incentives program 2007–2010

Within the Group, there is an incentives program for ­senior managers in the form of subscription warrants and employee options. For further information about this ­program, see Note 4.

Dividend policy

The Board of Directors’ goal is to propose dividends that over time correspond to approximately 30 to 50% of the Group’s profit for the year after tax. The timing, as well as the magnitude of any future dividends, will depend in part on the company’s profits, expansion and acquisition opportunities and its financial position in other respects.

For the 2009 fiscal year, the Board of Directors of ­Hemtex AB proposes that no dividend be paid.

Persons with insider status

Trading in shares in a company in which a person has insider status is called insider trading. Such trading must be registered according to law and reported to the Swedish Financial Supervisory Authority. Hemtex is obligated to report to the Financial Supervisory Authority which persons are insiders in Hemtex. These persons must register their shareholdings and all changes in their holdings. ­Certain closely related individuals and legal entities may also be subject to the reporting obligation. Hemtex’s ­management, Board of Directors, auditors and certain other executives are considered to have insider status in Hemtex. A link to a complete list of the persons with insider status is available under Investor Relations.

Stock market information

Hemtex’s information to the stock market must be characterized by openness, accuracy, relevance and speed. Once again this year, Hemtex has prepared a fully web-based annual report and thereby selected a distribution channel that is directly accessible to all. As a result, the format of the printed annual report has been simplified and its contents limited to the formal components. Hemtex has elected to prioritize the company’s share-related information via the web and its quarterly reports instead of producing an extensive annual report.

Hemtex’ press releases, interim reports and annual reports are available under Investor Relations. The website also contains additional information about the company, financial trends and the share. In addition, it is possible to subscribe on the website for press releases, interim reports, annual reports and the share’s closing price.

Owner relationships

On January 31, 2010, Hemtex AB had 3,228 shareholders. The relationships below refer to the owner list maintained by Euroclear Sweden AB on that date.