The Board of Directors of HKScan Corporation resolved on a key personnel incentive plan

HKScan Corporation                 Stock exchange release            20 December 2012                   8:15 am.

The Board of Directors of HKScan Corporation resolved on a key personnel incentive plan

The Board of Directors of HKScan Corporation has approved a new share based incentive plan for the Group key personnel. The aim of the new Plan is to combine the objectives of the shareholders and the key personnel in order to develop the value of the Company, to commit the key personnel to the Company, to increase their share ownership in the Company, and to offer them a competitive reward plan based on earning and holding the Company’s shares.

The new Plan includes three one-year performance periods, calendar years 2013, 2014 and 2015. The Board of Directors of the Company will decide on the performance criteria and their targets for a performance period at the beginning of each performance period. The potential reward from the performance period 2013 will be based on the HKScan Group´s Earnings per Share (EPS) and Return on Capital Employed (ROCE).

Furthermore, the new Plan includes one three-year performance period, calendar years 2013—2015. The prerequisite for receiving reward on the basis of this performance period is, among other things, that a key employee previously owns or acquires the Company´s series A shares up to the number determined by the Board of Directors. Furthermore, receiving of reward is tied to the continuance of employment or service upon reward payment.

Rewards from performance periods 2013 and 2013—2015 will be paid partly in the Company’s A series shares and partly in cash in 2016. The cash proportion is intended to cover taxes and tax-related costs arising from the rewards to the key personnel. No reward will mainly be paid, if the key employee’s employment or service ends before reward payment.

The Board of Directors recommends that the members of the Management Team would hold 50 per cent of all of the shares received on the basis of the Plan until the value of their share ownerships correspond to their gross annual salaries. This share ownership should be held during the validity of employment or service.

The Plan is directed in the beginning to maximum 23 people. The rewards to be paid on the basis of the performance periods beginning in 2013 are a maximum approximate total of 300 000 HKScan Corporation series A shares and cash payment corresponding to the value of such shares.  The Plan can include new shares as well as the Company's own shares.

HKScan Corporation
Hannu Kottonen
CEO

For more information, please contact:
Juha Kylämäki, Chairman of the Board, HKScan Corporation. You can ask him to call you back by contacting Marjukka Hujanen, tel. +358 10 570 6218.

HKScan is one of the leading food companies in northern Europe, with home markets in Finland, Sweden, Denmark, the Baltic countries and Poland. HKScan manufactures, sells and markets pork and beef, poultry products, processed meats and convenience foods under strong brand names. Its customers are the retail, food service, industrial and export sectors. In 2011, it had net sales of EUR 2.5 billion and some 11 400 employees.

DISTRIBUTION:
NASDAQ OMX Helsinki Ltd,
Main media,
www.hkscan.com