STORA introduces profit-sharing scheme and options program

STORA introduces profit-sharing scheme and options program As part of its program of measures to increase profitability and shareholder value in STORA, the company's Board of Directors has decided to introduce a profit-sharing scheme for employees and an options program for senior executives in the Group. Profit-sharing scheme To the extent this is possible, the profit-sharing scheme will be available to all permanent employees within the Group. From that portion of profit exceeding the equivalent of a 12-percent return on capital employed, 20 percent will be set aside for the employees, although this shall not exceed one third of the dividend paid to shareholders. The goal is that the scheme will include all of the countries where STORA conducts operations, but exceptions could be made for countries where profit sharing already exists in another form, or where local legislation prohibits such schemes. In Sweden, the intention is to place the profit participations in a trust, through which investments will be made in STORA shares, which will become available to employees after three years. Options program STORA's Board of Directors has also decided to introduce an options program with opportunities to receive an annual allotment of call options to purchase STORA shares. The program will be offered to up to one hundred senior executives within the Group. The extent of the call options allotted will be linked to the trend of STORA's A share in relation to a comparable group consisting of other Nordic forest products companies. On occasions when STORA's total return (share price and dividend) develops positively and outperforms the average for the comparable group, an allotment of call options will be made. The call options will have a maturity of five years. Since the options provide holders with the right to acquire existing shares, there will be no dilution effect for current shareholders. The options program will be protected financially, which means that the company's costs for the option program are already known and will not be affected by future movements in the price of the STORA share. The allotted call options will be purchased on market terms from independent market players. The maximum value of the annual allotment of the call options is SEK 50 million. STORA has commissioned Aros Securities to act as financial advisor. Both the profit-sharing scheme and the options program are effective as of the current financial year. For further information, please contact: - Christer Ågren, Senior Vice President Human Resources, Tel: +46 (0)70 655 66 01 - Mats Agurén, Senior Vice President Communications, Tel: +46 (0)8 613 66 00,+46 (0)23 78 00 00