Report
Expert Corporate Governance Service (ECGS)
EUR 1000.00 For Business Accounts Only

Husqvarna - EGM 23 October 2020

ECGS notes that as a result of the Covid-19 pandemic the AGM will be held as an electronic meeting only. Consequently, it will not be possible to attend the AGM in person.

In general, Husqvarna is in compliance with the Swedish regulations relating to the organization and procedures of the Extraordinary General Meeting.

Under ITEM 7 the board of directors proposes to distribute an extraordinary dividend of SEK 2.25 per share. ECGS notes that the Company decided to refrain from dividend payments at the AGM 2020 in view of the Covid-19 pandemic. As such an unchanged dividend per share of SEK 2.25 is proposed to be paid for the FY 2019. The (proposed) dividend is covered by FCF as well as in accordance with the Company¶s dividend policy. ECGS furthermore notes that Husqvarna¶s (financial) results to date (EPS Q2 2020: SEK 4.47 vs EPS Q2 2019: SEK 4.62, mainly achieved through cost reductions as revenues were down by 6%) are sufficiently healthy to warrant the (proposed) dividend payment, indicating that the Company is little affected by the Covid-19 pandemic. In view of the above, ECGS recommends to vote FOR.

Underlying
Husqvarna AB Class B

Husqvarna AB produces outdoor power products. Products include: robotic lawn mowers, chainsaws, handheld petrol-powered products such as clearing saws and trimmers, garden tractors, and lawn mowers. Co. is also engaged in providing consumer watering products, cutting equipment and diamond tools for the construction and stone industries. Co.'s products and solutions are sold via dealers and retailers. Co. has three business areas: Europe & Asia/Pacific and Americas, which provide forest, park and garden products to dealers and retailers in Europe and Asia/Pacific, and in North and Latin America, respectively; and Construction, which provides light construction products and diamond tools.

Provider
Proxinvest
Proxinvest

Founded in 1995, Proxinvest is an independent proxy firm supporting the engagement and proxy analysis processes of investors. Proxinvest mission is to analyse corporate governance practices and resolutions proposed at general meetings of listed firms.

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Analysts
Expert Corporate Governance Service (ECGS)

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