Svenska Handelsbanken — AGM Information 2021

Sep 21, 2021

Handelsbanken convenes an Extraordinary General Meeting and proposes extra dividend

Handelsbanken convenes an Extraordinary General Meeting and proposes extra dividend

The Board of Directors of Handelsbanken intends to shortly convene an

Extraordinary General Meeting to be held on 21 October 2021. The Board of

Directors proposes an extra dividend of shares in Industrivärden corresponding,

as of today, to a value of approximately SEK 8.7 billion, or SEK 4.42 per share

in Handelsbanken.

· For many years, Handelsbanken's business model has generated stable earnings

and capital growth. This development has continued during the pandemic and the

Bank's capitalisation is, as of today, well above the Bank's target ratio level.

· As a result of the Bank's good capital situation, the Board of Directors of

Handelsbanken has resolved to convene an Extraordinary General Meeting and

propose an extra dividend.

· The dividend is intended to consist of approximately 30.5 million class A

shares in Industrivärden, corresponding, as of today, to a value of

approximately SEK 8.7 billion, or SEK 4.42 per share, based on the closing price

for the Industrivärden class A share on 20 September 2021. The shares are

currently managed by Handelsbankens Pensionsstiftelse, but are proposed to be

acquired by Svenska Handelsbanken AB (publ) before they are distributed to the

shareholders.

· The Bank's exposure to shares in the pension management is reduced through a

dividend in the form of shares, which increases long-term stability in the

Bank's capitalisation.

· The dividend increases return on equity by 0.3 percentage points.

· The Bank's pension commitments - benefits and payments - towards employees

and pensioners are not affected as a result of the transaction.

The Board of Directors' complete proposals will be included in the forthcoming

notice to the Extraordinary General Meeting. An information brochure on the

proposed dividend is intended to be made available on Handelsbanken's website

www.handelsbanken.com around 30 September 2021.

For further information, please contact:

Lars Höglund, Head of Investor Relations & Group Financial Strategy, +46 70 345

51 70

Viktoria Aastrup, Head of Group Media Relations, +46 73 043 51 59

The proposal means:

For many years, Handelsbanken's business model has generated stable earnings and

capital growth, and has, also during the covid-19 pandemic, demonstrated a very

good, and gradually even more improved, credit quality. Altogether, this implies

that the Bank's financial position has gradually been strengthened further and

the current capitalisation is well above the Bank's target ratio level.

As a result of the Bank's good capital situation, the Board of Directors of

Handelsbanken has resolved to convene an Extraordinary General Meeting and

propose an extra dividend of shares in Industrivärden, a dividend-in-kind, to

the shareholders, corresponding, as of today, to approximately SEK 8.7 billion.

The CET1 level, the common equity tier 1 ratio, pro forma as of 30 June 2021, is

estimated, with this level of dividend, to fall from 20.5% to approximately

19.4%.

The dividend-in-kind is proposed to be made through a distribution of

approximately 30.5 million class A shares in Industrivärden, that simultaneously

will be acquired from Svenska Handelsbankens Pensionsstiftelse, (the "Pension

Foundation"), which is part of Handelsbanken's pension management of the Bank's

occupational pensions. The net assets in the Pension Foundation have a direct

impact on the Group's equity and thereby also on CET1. Furthermore, net surplus

is subject to a capital requirement according to the CRR in pillar 1 and the

risks in the pension system are subject to a capital requirement in pillar 2

according to the Swedish Financial Supervisory Authority's model for pension

risk. The purpose of the proposal is therefore to reduce the portion of shares

in the overall pension management for defined benefit occupational pensions in

order to reduce volatility in the pension management. A reduction of volatility

in the pension management's asset values increases long-term stability in the

Bank's capitalisation.

Handelsbanken and the Pension Foundation therefore intend to enter into an

agreement whereby Handelsbanken acquires approximately 30.5 million class A

shares in Industrivärden from the Pension Foundation in connection with the

Extraordinary General Meeting at the then prevailing share price.

The acquisition is subject to the Extraordinary General Meeting of Handelsbanken

approving the acquisition and resolving on a distribution of these shares to the

shareholders.

The proposal in brief:

· 30,461,977 class A shares in Industrivärden are proposed to be distributed

to the shareholders in Handelsbanken. Shareholders in Handelsbanken would

receive one class A share in Industrivärden for each 65[th] share they own in

Handelsbanken (irrespective of share class).

· The dividend is estimated to amount to a total of approximately

SEK 8.7 billion, or SEK 4.42 per share, based on the closing price for the

Industrivärden class A share on 20 September 2021.

· The shares in Industrivärden are currently managed by the Pension

Foundation, but are intended to be acquired by Handelsbanken in connection with

a resolution on the dividend at the then prevailing share price.

· The Board of Directors of Handelsbanken intends to shortly convene an

Extraordinary General Meeting on 21 October 2021 to resolve on Handelsbanken's

acquisition of class A shares in Industrivärden from the Pension Foundation and

distribution of these shares to the shareholders in Handelsbanken.

· The proposed record date is 25 October 2021. The shares in Industrivärden

are expected to be available on the shareholders' accounts around 27 October

About the pension management

Handelsbanken's management of defined benefit pensions in Sweden is secured by

the Pension Foundation and by Pensionskassan SHB Tjänstepensionsförening (the

"Pension Fund"). The assets that are managed to secure the defined benefit

pensions exceed the total pension commitments. The defined benefit pension

system is closed to new employees, and has been replaced with defined

contribution pension. The risk in the management of the pension assets allocated

for defined benefit pension commitments can be further decreased by reducing the

portion of shares. A divestment of the Pension Foundation's shares in

Industrivärden to Handelsbanken is part of this strategy. The Bank's pension

commitments - benefits and payments - towards employees and pensioners are not

affected as a result of the transaction.

This information is of the type that Svenska Handelsbanken AB is obliged to make

public pursuant to the EU Market Abuse Regulation. The information was submitted

for publication through the agency of the contact person set out above,

at 17:35 CET on 21 September 2021.