HKScan’s Board of Directors decided on new plan periods within the share-based long-term incentive scheme for key employees

HKScan Corporation             Stock Exchange Release 8.5.2019, at 8.05 (EEST)

HKScan’s Board of Directors decided on new plan periods within the share-based long-term incentive scheme for key employees

The Board of Directors of HKScan Corporation has approved new plan periods within the share-based long-term incentive scheme for HKScan's key employees. The long-term incentive scheme comprises a Performance Share Plan (also “PSP”) and a Restricted Share Plan (also “RSP”).

HKScan announced the establishment of the share-based long-term incentive scheme with a stock exchange release on 7 February 2018.

New plan period in the Performance Share Plan 

The Board approved the commencement of a new plan period, PSP 2019–2021, within the Performance Share Plan structure. The payment of the share rewards thereunder is conditional on the achievement of the performance targets set by the Board of Directors. The potential rewards will be paid in class A shares of HKScan in two tranches, the first in the spring 2022 and the second in the spring 2023.

The performance criterion based on which the potential share rewards under PSP 2019–2021 will be paid is the operative cash flow of HKScan.

Eligible to participate in PSP 2019–2021 are the Group Management Team members, in total maximum of 10 individuals.

The aggregate maximum value of the allocated earning opportunity (at the time of allocation) under PSP 2019–2021, together with the earning opportunity to be allocated under RSP 2019–2021 (referred to below) is approximately €4.25million (gross from which the applicable payroll tax is withheld) and the maximum earning opportunity to be allocated, expressed in number of shares to be potentially be issued based on these plans is at maximum of 3% of the shares of HKScan (at the time of allocation).The earning opportunity under the PSP 2019–2021 and RSP 2019–2021 will be allocated after the share issue announced today is intended to have been finalised, approximately in July 2019.

New plan period in the Restricted Share Plan 

The Board approved the commencement of a new plan period, RSP 2019–2021, within the Restricted Share Plan structure. The potential share rewards thereunder will be paid in class A shares of HKScan in two tranches, the first in the spring 2022 and the second in the spring 2023.

The Board has for RSP 2019–2021 set a group level financial criterion, the fulfilment of which is a precondition for the payment of the share rewards under the plan. This criterion is based on average comparable ROCE (return on capital employed) before taxes.

Eligible to participate in RSP 2019–2021 are the participants of the PSP 2019–2021 plan.

The aggregate maximum value of RSP 2019–2021 will be within the maximum limits referred to above.

Other terms 

In connection with the decisions announced above the Board of Directors of HKScan also decided that the performance criterion which shall apply to the remaining performance period of the ongoing PSP 2018–2020 plan will, in line with the new PSP plan announced above, be the operative cash flow of HKScan.

The earning of the participants within the above plans is capped. If the end value of the class A share of HKScan within the three-year plan exceeds four times its start value, the exceeding value of the reward will be cut and the excess will not be paid.

HKScan Corporation
Board of Directors

Media contacts: please call HKScan’s Media Service Desk: +358 10 570 5700 or email: communications@hkscan.com

HKScan is a Nordic meat and meals company. We employ close to 7 200 professionals in striving to serve the world´s most demanding consumers, maintaining quality throughout the full chain of operations, From Farm to Fork. HKScan produces, markets and sells high-quality, sustainably produced pork, beef, poultry and lamb products, as well as charcuterie and meals, with strong consumer brands, including HK®, Scan®, Rakvere®, Kariniemen®, Rose®, Pärsons® and Tallegg®. Our customers are the retail, food service, industrial and export sectors, and our home market comprises of Finland, Sweden, Denmark and the Baltics. We export to close to 50 countries. In 2018, HKScan had net sales of EUR 1.7 billion.

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HKScan is a Nordic meat and meals company. We employ over 7 300 professionals in striving to serve the world ìs most demanding consumers, maintaining quality throughout the full chain of operations, From Farm to Fork. HKScan produces, markets and sells high-quality, sustainably produced pork, beef, poultry and lamb products, as well as charcuterie and meals, with strong consumer brands, including HK®, Scan®, Rakvere®, Kariniemen®, Rose®, Pärsons® and Tallegg®. Our customers are the retail, food service,industrial and export sectors, and our home market comprises of Finland, Sweden, Denmark and the Baltics. We export to close to 50 countries. In 2017, HKScan had net sales of EUR 1.8 billion, making us one of Europe’s leading meat and meals companies.www.hkscan.com

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