Report from Concentric AB’s Annual General Meetingon 3 May 2018

Concentric AB’s AGM was held today Thursday 3 May 2018. The main resolutions passed were the following.

Regarding full details of the resolutions, a referral is made to the notice convening the AGM and the complete proposals. The notice convening the AGM and the complete proposals are available at the company’s website, www.concentricab.com.

Adoption of the income statements and the balance sheets

The meeting resolved to adopt the income statement and balance sheet and the consolidated income statement and consolidated balance sheet for the financial year 2017.

Dividend  

The meeting resolved, in accordance with the board’s proposal, on a dividend of SEK 3.75 per share. The record date was set to Monday 7 May 2018. The dividend is expected to be distributed by Euroclear Sweden AB on Friday 11 May 2018.

Discharge from liability

The meeting discharged the directors and the managing director from personal liability towards the company for the administration of the company in 2017.

Board of directors and auditors  

The meeting re-elected Kenth Eriksson, Marianne Brismar, Martin Lundstedt, Anders Nielsen, Susanna Schneeberger, Martin Sköld and Claes Magnus Åkesson as directors. The meeting elected Kenth Eriksson as chairman of the board.

The registered accounting firm KPMG was re-elected as the company’s auditor until the end of the AGM 2019.

The meeting resolved that the chair of the board shall receive SEK 560,000 (previously SEK 540,000) and that each of the other board members shall receive SEK 265,000 (previously SEK 255,000). Additional consideration shall be paid to the chair of the compensation committee in the amount of SEK 75,000 (previously SEK 50,000) and to members of the compensation committee in the amount of SEK 30,000 (previously SEK 0). Further, it was resolved that the chair of the audit committee shall receive SEK 100,00 (previously SEK 75,000) and members of the audit committee shall receive SEK 50,000 (previously SEK 0). The resolution means that the total remuneration to the board of directors (including fees for committee work) increases from SEK 2,195,000 to SEK 2,455,000.

It was resolved at the meeting that fees would be paid to the auditor in accordance with approved invoices.

Guidelines for remuneration to senior executives  

The meeting resolved to adopt guidelines for remuneration to senior executives as proposed by the board of directors, principally unchanged in comparison to the guidelines of last year.

Retirement of repurchased own shares

The meeting resolved to retire 840,900 of the company’s own repurchased shares. The retirement of shares is carried out through a reduction of share capital with retirement of shares and a subsequent bonus issue to restore the share capital. Altogether, the resolutions result in the number of outstanding shares being reduced by 840,900 and the share capital being increased in total by SEK 213.

Performance based incentive programme  

In accordance with the board’s proposal, the meeting resolved to implement a long-term performance-based incentive programme, LTI 2018. The programme is offered to up to nine senior executives, including the managing director, and other key employees within the Concentric group, who, provided an own investment in Concentric shares, are offered stock options that, under certain conditions, give participants the right to acquire Concentric shares after a three-year lock-up period.

The LTI 2018 is expected to result in costs of MSEK 1.1 annually for Concentric if participants invest to their individual limits, the performance targets are fully achieved and an annual share price growth of 15 per cent is assumed. In addition to this, social security charges will apply in the year of vesting, 2021. Social security charges are expected to be expensed to an amount of MSEK 0.5 annually based on the same assumptions.

Issue of warrants and approval of transfer of warrants 

As one of several options to secure a cost-efficient supply of Concentric shares for transfer under the LTI 2018, the meeting adopted the board's proposal to issue, free of charge, 140,000 warrants to its wholly-owned subsidiary Concentric Skånes Fagerhult AB. Should the board choose the option to utilize the warrants for delivery of shares under the LTI 2018, the dilution effect will total 0.4 per cent, otherwise the warrants will lapse and the dilution effect be nil.

Furthermore, the meeting resolved to approve that Concentric Skånes Fagerhult AB, on one or more occasions, may transfer warrants to the participants in LTI 2018 in accordance with the terms and conditions of LTI 2018, and otherwise dispose the warrants to cover costs related to, and fulfil obligations occurring under, LTI 2018.

Acquisitions and transfers of own shares  

In accordance with the board’s proposal, the meeting resolved to authorise the board to acquire and/or transfer own shares, with deviation from the shareholders’ preferential rights, on one or more occasions until the AGM 2019.

Acquisition of the company’s own shares shall be made on Nasdaq Stockholm, for the purpose of, inter alia, being able to improve the company’s capital structure and to enable share transfers in accordance with the authorisation for the board to transfer own shares and resolution on transfer of own shares to participants in LTI 2015-2018, to increase the flexibility for the board in connection to potential future corporate acquisitions, as well as to cover costs for LTI 2015-2018 and enable delivery of shares in accordance with LTI 2015-2018. The company’s total holdings of own shares must not at any time exceed 10 per cent of the total number of shares in the company.

Transfer of the company’s own shares may be done for the purpose of, inter alia, being able to improve the company’s capital structure, to cover costs relating to LTI 2015-2018 as well as to increase the flexibility of the board in connection to potential future corporate acquisitions, by facilitating a fast and efficient financing by divesting holdings of own shares. Transfer of own shares can be made either on Nasdaq Stockholm or in any other manner, and the maximum number of shares that may be transferred is the total number of own shares held by the company at the time of the board’s resolution to transfer the shares.

In accordance with the board of director’s proposal, the meeting approved the transfers of own shares to participants in the LTI 2018 on the terms and conditions that apply for the incentive programme.

Transfer of own shares to an employment share ownership trust

In accordance with the board’s proposal and to enable a tax efficient delivery of shares under LTI 2018 to participants resident in the United Kingdom, the meeting resolved that the company should be able to invite those participants to take part in a Joint Share Ownership Plan (“JSOP”). Using the JSOP will not change any terms specified in LTI 2018 and the total costs for using the JSOP are expected to be in line with those specified in the board’s proposal on LTI 2018.

To facilitate the JSOP, the meeting resolved on transfer of own repurchased shares to an employment share ownership trust equal to the maximum number of share options which may be awarded to participants who elect to join the JSOP. As specified within the terms of a joint ownership agreement, these shares will be jointly owned by the employment share ownership trust and the respective participant. The meeting resolved that transfer of own shares may be made with deviation from the shareholders’ preferential rights.

Change to the articles of association

In accordance with the board’s proposal, the meeting resolved to amend the articles of association. The resolution adjusts the number of shares and the share capital limits of the company. Further, the limits of allowed board members are adjusted, as well as a minor adjustment due to the name change of an Act.

For further information, please contact Lennart Lindell, +46 (0)766 104 004