Shares

Marel is the largest company listed on Nasdaq Iceland by market capitalization and ranks in the top five among mid-cap companies listed on Euronext Amsterdam, by free-float market capitalization. The market value at year-end 2021 was EUR 4.6 billion, compared to EUR 3.9 billion at year-end 2020.

Since listing on Nasdaq Iceland and dual listing on Euronext Amsterdam in 2019, Marel has attracted a diversified international shareholder base, and broadened its analyst coverage.

Despite a market environment colored by the pandemic and its aftermath of challenges relating to supply chain, logistics, and price inflation in 2021, Marel’s shares rose 10.9% in ISK on Nasdaq Iceland and 18.3% in EUR on Euronext Amsterdam. Marel’s shares outperformed the AMX mid-cap index on Euronext Amsterdam by 2.9% while underperforming the local Nasdaq Iceland OMXI10 index by 22.1%.

Marel trades under the ticker MAREL and ISIN IS0000000388 on both Nasdaq Iceland and Euronext Amsterdam. However, the company’s shares are not traded exclusively on the two stock exchanges. With the dual listing on Euronext Amsterdam, trading in Marel’s shares has become more fragmented, with an increasing proportion of trading taking place outside of regulated markets. Trading volumes outside Nasdaq Iceland have been disappointing. Marel will continue to monitor the issue and undertake various liquidity initiatives aimed at improving trading activity outside Iceland.

Marel has agreements with Kvika banki hf. and Íslandsbanki hf. for market making in its shares on Nasdaq Iceland, and with ABN AMRO ODDO BHF BV and Kepler Cheuvreux SA on Euronext Amsterdam. The purpose of these agreements is to facilitate trading to improve liquidity and enhance transparent price formation in the company’s shares on both stock exchanges.

As market makers on Nasdaq Iceland, Kvika banki hf. and Íslandsbanki hf. are committed to making daily bid and ask offers for shares in Marel for a minimum of 30,000 shares, at a price that they determine in every instance. The bid-ask spread shall be determined with reference to the tick size table of Nasdaq Iceland hf. as it is at any given time with the bid-ask spread as close to 1.50% as possible but not below 1.45%.The market makers are permitted to go below the aforementioned bid-ask spread in case of circumstances due to the tick size table of Nasdaq Iceland hf.

The total number of shares each market maker is committed to buy or sell each day is 240,000 shares in Marel on Nasdaq Iceland. The agreements with Kvika banki hf. and Íslandsbanki hf. are valid for an indefinite period and may be terminated with one month’s notice.

As market makers on Euronext Amsterdam, ABN AMRO ODDO BHF BV and Kepler Cheuvreux SA are required to provide quotes, bids and asks, for a minimum aggregate order value of EUR 5,000 each. In accordance with Euronext Amsterdam’s rules the liquidity providers shall be permanently present during the trading session and 15 minutes before the opening session.

The maximum bid/ask spread is 3% as of the agreement with Kepler Cheuvreux SA. According to the agreement with ABN AMRO ODDO BHF BV, the maximum bid/ask spread is 3% if Marel’s share price exceeds EUR 4.00 and a maximum of EUR 0.12 per share in case the share price is lower than or equal to EUR 4.00. The agreements are valid for one year and can be terminated with written notices with immediate effect for ABN AMRO ODDO BHF BV and in one month for Kepler Cheuvreux SA.

In 2019, Marel was added to the FTSE Frontier Index Series by international indexing company FTSE Russell. Following the September 2021 Annual Review, FTSE Russell announced that Iceland is being added to their Watch List for possible reclassification to Secondary Emerging.

FTSE Russell will provide an update as part of the Interim Review of markets in March 2022. The announcement has already attracted investor interest and is expected to benefit Marel in terms of increased liquidity due to foreign investment inflow while enabling further shareholder diversification.

In 2021, international indexing company MSCI reclassified Iceland from Standalone Markets to Frontier Markets, and subsequently Marel was added to the MSCI’s Frontier Markets Index series. Icelandic stocks have been incorporated in MSCI’s indexes since 2018, when it was the first inclusion of Icelandic stocks since 2008 and since the lifting of capital controls in March 2017.

Marel is also included in the Nordic Large Cap segment of the Nasdaq OMX and is part of the OMXI10, an index that consists of the ten most actively traded companies on Nasdaq Iceland. Since 2019 Marel has also been included in the VINX Benchmark Index by Nasdaq OMX Nordic. Based on free-float market capitalization and turnover, among other factors, Marel is the only Icelandic company represented in this index of 183 Nordic companies.

Eyrir Invest hf. is Marel’s largest shareholder, holding 24.7% or 190,366,838 shares, followed by the Icelandic Pension Fund of Commerce (LIVE) that also had reported shareholding above 5% in Marel at year-end 2021. Eyrir Invest has been a principal shareholder in Marel since 2005.

All Marel shares listed on Euronext Amsterdam, including shares transferred from Nasdaq Iceland to Euronext Amsterdam, are held in custody on behalf of Euroclear. No single shareholder holding shares only in EUR currently exceeds the threshold of 5% of total share capital.

Shareholders who hold shares in Marel on Nasdaq Iceland and Euronext Amsterdam have identical rights, including voting rights and rights to dividends. As of year-end 2021, 276.0 million shares or 35.8% of Marel’s total issued shares were listed on Euronext Amsterdam. The free float as of year-end 2021 was 75.3%.

Earnings per share (EPS), calculated by dividing the net profit attributable to shareholders by the weighted average number of outstanding shares issued, were EUR 12.85 cents in 2021, compared to 13.62 in 2020. Marel’s management targets basic earnings per share to grow faster than revenues, resulting in profitable growth.

Ahead of the Annual General Meeting on 16 March 2022, Marel’s Board of Directors has proposed that a dividend of EUR 5.12 cents per share be paid for the operational year 2021 (2020: EUR 5.45 cents per share), corresponding to 40% of profits for the year. This is a 6% decrease in dividend per share compared to previous year. The estimated total dividend payment will be around EUR 38.7 million for the operational year 2021, compared to EUR 41.0 million in 2020. The proposed dividend is in line with Marel’s targeted capital allocation and dividend policy, i.e. a dividend policy of 20-40% of net earnings and a targeted leverage ratio of 2-3x net debt/EBITDA.