New H+H long-term incentive program and grants for 2020

The Board of Directors of H+H International A/S (H+H) has decided to implement a new long-term incentive program (LTIP) being a performance share unit (PSU) program, and PSU grants under the LTIP are made as described below.

The terms of the LTIP are in accordance with the principles of the Remuneration Policy for the Board of Directors and the Executive Board as approved at the annual general meeting on 2 April 2020 and available at H+H’s website at www.HplusH.com.

The members of the Executive Board of H+H, the other members of the H+H management as well as key employees in the H+H group are eligible to participate in the LTIP and receive PSUs free of charge at grant. New participants may enter a LTIP after its start, e.g. if the participant is newly employed.

The purpose of the LTIP is to motivate the participants to pursue and reach long-term key performance indicators (KPIs) defined by H+H’s Board of Directors. The value of the PSUs granted to an executive board member of H+H under a LTIP may not at time of grant exceed a value equal to 60% of the member’s annual fixed salary. The number of PSUs that vest at the end of a vesting period depends on the extent of achievement of the specific KPIs.

The vesting period for the PSUs is approx. three years, with vesting for the 2020 LTIP being in 2023 when the audited annual report for 2022 is publicly announced. Upon vesting, the participants will receive one H+H share per PSU that vests.

The LTIPs will have no dilution effect on H+H shareholders. Similar to the two pending matching share LTIPs that vest in 2021 and 2022, H+H intends to use treasury shares to meet its obligations to deliver shares under the PSU-based LTIP at vesting.

At initiation of the 2020 LTIP, a total of 88,300 PSUs are granted to the participants, including 23,400 PSUs to H+H’s CEO Michael T Andersen and 13,800 PSUs to CFO Peter Klovgaard-Jørgensen. Based on the average of the daily average share price for H+H shares on Nasdaq Copenhagen for the first 10 trading days from announcement on 11 March 2020 of the annual report for 2019, the theoretical value of the said grants is DKK 79.54 per PSU, i.e. an aggregate theoretical value of DKK 7,023,382.

Kent Arentoft                                                                       Michael T Andersen
Chairman of the Board of Directors                                    CEO

For further information please contact:
CEO Michael T Andersen, CFO Peter Klovgaard-Jørgensen or IR Manager Cristina Rønde Hefting on telephone +45 35 27 02 00

H+H’s core activity is the manufacture and sale of wall building materials, with a revenue in 2019 of DKK 2.8 billion. The main product lines are aircrete blocks and calcium silicate units used for the residential new building segment. H+H has 29 factories in Northern and Central Europe with a total annual output of more than 4 million cubic metres of products and has a leading position in most of its markets. H+H has more than 1,600 employees and is listed on Nasdaq Copenhagen.