The Board announces target levels for long-term share-based incentive program (LTIP 2019)

The notice of the Annual General Meeting of Mekonomen AB (publ) discloses the Board's proposal for a long-term share-based incentive program (LTIP 2019). The Board hereby announces the target levels of TSR and the Group’s equity/assets ratio, which are substantially equivalent to those approved by the 2018 Annual General Meeting for LTIP 2018.

According to the proposal, the share Rights are divided into Series A and Series B. Of the five Share Rights (received for each investment share), the participants receive one Share Right of Series A and four Share Rights of Series B. The number of Share Rights that entitles to allocation of shares depends on the achievement of the financial key ratios and performance targets that apply for the respective series as follow from the proposal:

  • Series A: Allocation requires certain levels of the total shareholder return (TSR) on Mekonomen's share during the period 1 April 2019 – 31 March 2022 and of the Group's equity/assets ratio at the end of the financial year 2021.
  • Series B: Allocation requires that the levels in Series A are achieved and, in addition, that certain target levels are achieved relating to growth in earnings per share in Mekonomen during the financial years 2019 – 2021 compared to earnings per share for the financial year 2018. The Board has determined a minimum level and a maximum level for each performance target. If the degree of achievement is between the minimum and the maximum levels, the outcome will be measured on a linear basis. The Board will adjust the outcome for items affecting comparability and for any effects relating to repurchase of shares in the Company. Mekonomen intends to present the target levels and to what extent these have been achieved after the end of the program.

The Board has determined the target levels that TSR shall exceed 0 per cent during the period 1 April 2019 – 31 March 2022 and that the Group’s equity/assets ration shall exceed 40 per cent at the end of the financial year 2021.

The fundamental reason for establishing LTIP 2019 is to align the shareholders' interests with the interests of the company management and other key employees to ensure maximum long-term value creation and to encourage a personal shareholding in Mekonomen. In addition, the Board is of the opinion that LTIP 2019 will help Mekonomen to recruit and retain members of the company management and other key employees.

For further information, please contact:

Malin Persson, Chairman of the Remuneration Committee, Tel: +46 (0)8-464 00 00
Helena Effert, IRO Mekonomen AB, Tel: +46 (0)8-464 00 00

About Us

Mekonomen operates in the car aftermarket and consists of leading car service chains in Northern Europe with a proprietary wholesale operation, more than 460 branches and over 3,400 affiliated workshops operating under the Group’s brands. Through its branch network, Mekonomen Group offers affordable spare parts and accessories to the affiliated workshops, other workshops, other B2B customers, as well as car owners. Around 90 per cent of sales are business to business, where 80 per cent of the orders are digital. The largest business to business customers are affiliated workshops operating under the Group´s concepts AutoMester, BilXtra, Din Bilpartner, Meca Car Service, Mekonomen Bilverkstad, O.K. Serwis, Speedy and others. The Group operates through four business areas – FTZ with operations in Denmark, Inter-Team with operations in Poland, MECA/Mekonomen with operations in Norway and Sweden and Sørensen og Balchen with operations in Norway.