REPORT FROM ELEKTA’S ANNUAL MEETING 2009
PRESS RELEASE Stockholm, Sweden, September 15, 2009 At the Annual General Meeting of Elekta AB (publ), 60 shareholders entitled to vote participated, representing 52 percent of the votes in the company. • Dividend to shareholders of SEK 2.00 (1.75) per share. • Akbar Seddigh, Carl G. Palmstierna, Tommy H. Karlsson, Laurent Leksell, Hans Barella, Birgitta Stymne Göransson, Luciano Cattani and Vera Kallmeyer were reelected to the Board.
Elekta’s President and CEO Tomas Puusepp opened his speech by describing the development of Elekta from a company specialized in neurosurgery to a partner and comprehensive provider of clinical solutions for treatment of cancer and brain disorders. “Our mission is to improve the quality of life and in more and more cases contribute to a life free from cancer and brain disorders. An important role for Elekta is also to make cancer care available. By expanding geographically and by contributing to the improvement of efficiency for health care providers, more patients will have access to treatment.” Every day more than 100,000 patients receive treatment for cancer and brain disorders with a solution from Elekta. “This is an important driver for me and my co-workers. We strive to become better and better at developing solutions that contributes to cancer care. We work to continuously make health care more efficient so that hospitals can treat more patients in shorter time and thereby making it possible to meet the increasing need for treatment.” Software is growing in importance as a tool for efficiency as well as accuracy, and for bringing research and development forward. “Today Elekta is the leading provider of software for oncology. Software will continue to play an important role in the future when treatment even better can be adapted for every individual and every specific cancer.” Elekta is becoming more involved in the complete treatment process and in the customers’ value chain. “This is an important element of Elekta’s sustainable profitable growth. We are growing and we will continue to grow with our more than 5,000 customers.” Elekta’s geographical expansion continues, and Tomas Puusepp highlighted the recent activities of the company. “Investments in Brazil has proven to be a great success with strong order bookings. This year we have initiated a strategic cooperation with Swedfund International, offering financing and competency for establishment of cancer care in Africa, Asia, Latin America and in parts of Eastern Europe. Together we work to establish cancer care in countries where there is little access to cancer care today.” Tomas Puusepp commented on the performance in the fiscal year 2008/09 and the first quarter 2010. “Despite of the worldwide economic crisis Elekta has had a solid performance in all product areas and in all regions. We are showing good results with improvements in order bookings, net sales, operating profit and net income.” He also commented on the ongoing efficiency program. “We have taken a number of steps to improve the efficiency, by further streamlining of the organization and by developing synergies based on our acquisitions. By creating larger units and regionalizing the Asian business we improve our possibilities to capture new opportunities in the market. We will reduce cost on an annual basis by SEK 100 M with full effect next fiscal year. The restructuring cost is expected to be SEK 40 M.” The financial outlook for this year remains unchanged. For 2009/10 it means an expected growth in net sales of more than 8 percent in local currency. Operating profit in kronor is expected to improve with more than 35 percent. The long term financial outlook also remains unchanged. “Elekta’s aim is to achieve sustainable profitable growth. We conduct the operations with a long term plan, regularly reviewed and evaluated by the Board of Directors and with a perspective of at least three years. The financial objectives form the base in the long term planning. Organic sales growth shall on average exceed 10 percent in local currency, operating result improvement rate shall exceed sales growth in SEK, return on capital employed shall exceed 20 percent and net debt/equity ratio shall not exceed 0.50.” Tomas Puusepp concluded by thanking shareholders for their confidence, and people in Elekta for good performance in the year. “Elekta is now stronger than ever. And I am convinced that Elekta in the future will play an even greater role in cancer care and treatment of brain disorders, making the care available to more people around the world.” Disposition of the company’s earnings Elekta’s dividend policy is to distribute 20 percent or more of net profit in the form of dividends, share buy-backs or comparable measures. The Meeting resolved in accordance with the Board’s proposal, that from the company’s disposable earnings of SEK 864,476,243 a dividend be paid to the shareholders in an amount corresponding to SEK 2.00 per share and that the balance be carried forward. The record date for the dividend was set at September 18, 2009. Election of the Board Following the proposal from the Nomination Committee, the Annual General Meeting reelected Akbar Seddigh, Carl G. Palmstierna, Tommy H Karlsson, Laurent Leksell, Hans Barella, Birgitta Stymne Göransson, Luciano Cattani and Vera Kallmeyer. Akbar Seddigh was reelected as Chairman of the Board. The Meeting decided that the total remuneration to the Board shall be SEK 2,685,000 of which 570,000 to the Chairman, SEK 285,000 each to the external Board members, SEK 70,000 to the Chairman of the Executive Compensation Committee and SEK 35,000 to other members of the Executive Compensation Committee, SEK 120,000 to the Chairman and SEK 60,000 to other members of the Audit Committee. No remuneration is paid to Board members employed by the company. Remuneration to auditors Remuneration to the auditor was resolved to be paid according to an approved account. Principles for executive compensation Board Chairman Akbar Seddigh reported on Elekta’s strategy for compensation to managers, in which the aim is to strengthen management by objectives, profit development in the short and long term as well as create long-term value growth and align management with the shareholder perspective. The Chairman also reported on the work of Elekta’s Executive Compensation Committee. The Meeting approved the principles for remuneration as proposed by the Board and presented on the company’s website. The principles will be valid for employment agreements entered into after the Meeting and for any changes made to existing employment agreements thereafter. Authorization of the Board to purchase and transfer own shares The Meeting authorized the Board of Directors during the period until the next Annual General Meeting, on one or more occasions, to decide on acquisition of a maximum number of own shares to the extent that after purchase, the company holds not more than 10 percent of the total number of shares in the company. The Meeting also authorized transfer of own shares during the period until the next Annual General Meeting. Incentive program The Meeting decided in accordance with the proposal on the issue of performance based share program. Performance Share Program 2009 is proposed to cover approximately 75 key employees in the Elekta group with an opportunity to be allotted, free of charge, class B shares in Elekta. Assuming maximum allotment of shares under Performance Share Program 2009 and a share price of SEK 105, the cost, including social security cost and financing cost for repurchased own shares is estimated at approximately SEK 24,400,000. The program is described in detail on Elekta’s website www.elekta.com. Composition of Election Committee The Meeting decided that an Election Committee should be appointed through a procedure whereby the chairman of the Board, before the end of the second quarter of the financial year, contacts three to five representatives for the, at that time, largest holders of A and B shares. Those representatives shall together with the Chairman of the Board constitute the Election Committee and fulfill its obligations in accordance with the Swedish Code of Corporate Governance. The names of the members of the Election Committee shall be published as soon as they have been appointed, however, not later than six months before the next Annual General Meeting. The Election Committee is appointed until a new Election Committee has been appointed. No remuneration shall be paid for the performance of the work in the Election Committee.