The closing price of Höganäs’ class B share in 2010 was SEK 263 (164),
equivalent to market capitalisation of class B shares of MSEK 8,973 (5,595).
The share price rose by 60% in 2010, clearly above the sector index and the
stock market overall. The NASDAQ OMX Stockholm rose by 23% and the
Mid Cap index by 12%, while the Materials sector index rose by 17% and the
Metals & Mining sub-index by 22%. The Höganäs  class B share set a high
in the year of SEK 272 on 21 and 23 December and a low of SEK 153 on
28 January.

Share capital
Höganäs’ share capital is SEK 175,494,660, divided between a total of
35,098,932 shares, of which 981,000 are class A shares and 34,117,932
class B shares. Both share classes have a quotient value of SEK 5.00 per
share and have equal rights to participation in the Company’s assets and
earnings. Each class A share has ten votes and each class B share has one
vote. Only the class B share is quoted on the stock market. A trading lot is
one share. 

Share turnover
With the introduction of the EU MiFiD directive, shares are now traded on
marketplaces other than stock exchanges. Such marketplaces include
Burgundy, Chi-X and Turquoise. Since introduction of the directive, trading in
Swedish shares off NASDAQ OMX Stockholm has gradually increased. The
Höganäs share is listed on NASDAQ OMX Stockholm, and trading in Stockholm
represented over 85% of total turnover of the share in 2010. In 2009, the
corresponding figure was 91%. A total of 26.74 (12.67) million shares were
traded in 86,793 (26,731) transactions, equivalent to a rate of turnover of
79% (37). The rate of turnover for the NASDAQ OMX Stockholm fell to 95% (119),
while the rate of turnover for the Mid Cap list was unchanged at 66% (65). 

Share buy-backs
The AGM of 26 April 2010 approved a re-purchase mandate of a maximum of
10% of class B shares in the period until the next AGM. Höganäs did not
re-purchase any shares in 2010. Höganäs’ holdings of treasury shares were
unchanged at 293,800 class B shares at year-end 2010, or 0.8% of the total
number of class B shares.

Ownership
At year-end 2010, Höganäs had 7,359 (7,469) shareholders. At year-end 2010, as
at the previous year-end, the three largest shareholders in terms of capital
were Lindéngruppen AB, AB Industrivärden and Didner & Gerge Fonder AB with a
total of 53.8% of the votes and 41.7% of the capital. 78.2% (82.4) of Höganäs AB’s
share capital is held by Swedish investors and 21.8% (17.6) by foreign investors.
Of the Swedish investors, it is mainly institutions that reduced their participating
interests in the year, while foreign shareholders increased their participating interests.
25.9% (30.4) of Swedish-held Höganäs shares are held by institutions, 23.4% (22.4)
by mutual funds and 28.9% (29.6) by private individuals. 
Swedish institutions and mutual funds increasing their holdings include
DnB/Carlson fonder (8th) and AFA  Försäkring (10th), which are new among
Höganäs’ ten largest shareholders. Of foreign shareholders, Marathon Asset
Management and the Norwegian Government increased their holdings.  The
largest foreign ownership is in the UK and US, holding 6.5% and 4.6% of capital respectively.

Dividend
The Board of Directors’ intention is to maintain annual dividend levels of some
30-50% of income after tax. Dividends should reflect Höganäs’ profit levels, future
prospects, cash flow and investment need and other relevant factors. Höganäs also endeavours to maintain even growth of dividends. For the financial year 2010, the
Board of Directors is proposing a dividend of SEK 10, or 43% of income after tax,
equivalent to a dividend yield of 3.8% per share, calculated on the closing price for
the year. Since its initial public offering, Höganäs has had an average annual
dividend yield of 2.9%.

History of the share
Höganäs was first listed on the Stockholm Stock Exchange back in 1903,  when it
was called Höganäs Billesholm. In 1987, Lindéngruppen AB acquired all the shares
of the Company, resulting in a de-listing. The Höganäs share was re-listed on the
then-Stockholm Stock Exchange in April 1994 and now trades on the Mid Cap list of
NASDAQ OMX Stockholm. Lindéngruppen AB remains the Company’s largest
shareholder.

Investor relations
Höganäs held a large number of meetings with representatives of financial institutions
in Höganäs, Stockholm and London in 2010. Höganäs arranges regular conference
calls and presentations, as well as conducting investor conferences when publishing
its interim and year-end reports.