Gunnebo Industrier AB Annual General Meeting

At the Annual General Meeting of Gunnebo Industrier AB held on 24 April 2007 shareholders resolved in favour of the Board’s proposal to pay a dividend of SEK 5.50 per share – giving a total of some MSEK 48.2. It was decided that 27 April 2007 should be the date of record for entitlement to dividend. It is expected that the dividend will be paid via VPC on 3 May 2007.

Bjarne Holmqvist, Mikael Jönsson, Sten Langenius, Malin Alfredsson, Carl-Gösta Ekström and Göran Danielsson were re-elected to the Board. The AGM re-elected Bjarne Holmqvist to be Chairman of the Board.

It was resolved that the Board fee should be SEK 1,075,000 in accordance with the Nomination Committee’s proposal, of which SEK 325,000 should be paid to the Chairman. Over and above this SEK 150,000 shall be paid for committee work as allocated at the discretion of the Board.

The AGM decided that the Nomination Committee should consist of representatives of the three largest shareholders on 30 September 2007. Until that date the present Nomination Committee will remain in office. The Chairman of the Board shall convene meetings. The Nomination Committee’s mandate includes submitting nominations for membership of the Board and a proposal for the Board fee to the 2008 AGM.

The AGM also resolved in favour of the Board’s proposals on guidelines for remuneration to senior management personnel. In brief, the guidelines mean that remuneration is to be competitive and that variable wage components, if any, shall not exceed two-thirds of the fixed annual salary. Any pension benefits over and above the statutory and contractual level shall be premium defined. Notice of termination for senior management personnel resident in Sweden is a maximum of 12 months on behalf of the company and 6 months on behalf of the individual. Severance pay over and above salary during the period of notice may not exceed one year’s salary. In individual cases the company may consider other methods of forms of notice. The Remuneration Committee makes decisions on the salaries and other conditions of employment for senior management personnel.

PricewaterhouseCoopers AB have already been elected to serve as auditors until the 2008 AGM.

Extracts from the President’s address to the AGM:

Christer Lenner, Gunnebo Industrier’s President and CEO, opened his address to the AGM by commenting on the enthusiasm and expectations he felt following the flotation of the company on the Stockholm stock market almost two years ago, which has enabled the company to develop more actively.

He then commented on Gunnebo Industrier’s very strong performance in 2006 with a significantly improved result; organic growth was 14%, the order intake rose by 23%, invoiced sales by 16%, and the operating profit and earnings per share rose by almost 40%. He also commented on growth on the various markets, with the North American market experiencing the strongest increase in growth at 34%. Christer Lenner also referred to the first-class job done by the company’s employees during the year.

Mr Lenner then commented on the interim report for the first quarter of 2007, where the result has continued in the same direction as in 2006 with the order intake up by 8% and a 15% increase in invoiced sales. The operating profit has risen by 30 % and profit after tax by 43%, all in relation to the corresponding period last year. In this connection he referred to the Group’s various business areas and to the acquisition of Clark Tracks in Scotland, which manufactures tracks for forest machines.

In conclusion Christer Lenner commented on the outlook for 2007. The result is expected to be at least as good as for 2006 and the company’s prospects are considered to be healthy with a continuation of the current favourable trend. Finally, Christer Lenner pointed out that strategic acquisitions, in the first instance within the existing business areas, will be a priority, and that Gunnebo Industrier is well placed for continued expansion in the future.


Gunnebo 24 April 2007.