Annual General Meeting of Loomis AB (publ)

At today's Annual General Meeting of Loomis AB (publ) the following was resolved:

Board of Directors
The Annual General Meeting resolved that the number of Board members shall be six with no deputy members. The Meeting re-elected Signhild Arnegård Hansen, Lars Blecko, Marie Ehrling, Alf Göransson, Jan Svensson and Ulrik Svensson. Alf Göransson was re-elected Chairman of the Board. The fee to the Board members was determined to a total of SEK 1,750,000 (including fees for committee work) apportioned so that the Chairman of the Board shall receive SEK 500,000 and the other Board members, except for the President, SEK 250,000 each. The Chairman of the Audit Committee shall receive SEK 100,000, the Chairman of the Remuneration Committee SEK 75,000, a member of the Audit Committee SEK 50,000 and a member of the Remuneration Committee SEK 25,000.

Nomination Committee
The Meeting re-elected Gustaf Douglas (Investment AB Latour, etc.), Marianne Nilsson (Swedbank Robur fonder), Mikael Ekdahl (Melker Schörling AB) Per-Erik Mohlin (SEB Fonder / SEB Trygg Liv) and Henrik Didner (Didner & Gerge fonder) was elected as members of the Nomination Committee before the Annual General Meeting 2012. Gustaf Douglas was appointed Chairman of the Committee.

Dividend
In accordance with the proposal of the Board, the Meeting resolved to declare a dividend of SEK 3.50 per share.

May 16, 2011 was determined as record date for dividend and payment from Euroclear Sweden AB is expected to commence on May 19, 2011.

Guidelines for remuneration to management
The Annual General Meeting resolved on the adoption of guidelines for remuneration to management, principally entailing that the remuneration and terms of employment shall be competitive and in accordance with market conditions, in order to ensure that the Loomis Group will be able to attract and keep competent management employees. The guidelines principally entail that the total remuneration to management shall consist of fixed salary, possible variable remuneration and other customary benefits and pension. The variable remuneration shall have an upper limit and be based on pre-determined targets. Pension rights for management employees shall be applicable as from the age of 65, at the earliest. All group management employees shall be comprised by fee-based pension plans. The Board shall be entitled to deviate from the guidelines in individual cases if there are particular grounds for such deviation. The complete guidelines are published on the company website.

Incentive Scheme
The Meeting resolved, in accordance with the Board proposal, on the implementation of a share and cash based incentive scheme (the “Incentive Scheme”). The implementation of the Incentive Scheme principally entails that 1/3 of any annual bonus earned may be paid in the form of shares of series B in Loomis with delayed payment and subject to continued employment with Loomis.

Approximately 300 employees now participating in the Loomis incentive scheme will participate in the Incentive Scheme and thereby be entitled to receive a part of the yearly bonus in the form of shares in Loomis, provided that certain predetermined and measurable performance criteria, which currently apply under the incentive schemes, are met. The existing principles relates to result improvement and are set as close to the local business as possible and aim for long term profitability of the group.

Provided that the applicable performance criteria are met, the yearly bonus will be determined at the outset of 2012 and be payable by (i) 2/3 in cash at the outset of 2012 and (ii) 1/3 in shares of series B (the “Bonus Shares”) at the outset of 2013. The number of shares to which each participant will be entitled shall be determined by the ratio between the available bonus and the share price at the time of determination of the bonus. Distribution of Bonus Shares in accordance with (ii) presupposes that the participant is employed by Loomis as of the last day of February 2013. If the total accrued bonus amounts to less EUR 4,200, the whole bonus will be paid out in cash in accordance with (i) above.

Furthermore, in order to enable Loomis’ delivery of Bonus Shares in accordance with the Incentive Scheme, the Meeting resolved to authorize the Board to resolve, on one or several occasions until the AGM 2012, on the acquisition of a maximum of 325,000 treasury shares of series B on the NASDAQ OMX Stockholm Exchange at a price within the price interval that may be registered at any given time, referring to the interval between the highest purchase price and the lowest selling price. The Board may resolve on acquisition of treasury shares within the scope of a repurchase program in accordance with the Regulation of the European Commission (EC) No. 2274/2003.

To be able to deliver Bonus Shares to the participants in the Incentive Scheme, the Meeting resolved to transfer a maximum of 325,000 treasury shares of series B. The right to acquire shares shall accrue to participants in the Incentive Scheme. The transfer of shares shall take place free of charge.

Authorisation for the Board of Directors to resolve on the acquisition and transfer of the company’s own shares
According to the proposal of the Board, the AGM resolved to authorise the Board of Directors to resolve, on one or several occasions up to the Annual General Meeting 2012, on the acquisition and transfer of the company’s own shares in order to enable the Board of Directors to finance company acquisitions. The authorized acquisitions, may not lead to the shareholding of the company, including shares otherwise acquired and held, from time to time exceeding 10 per cent of the total number of shares in Loomis. Transfer of the company’s own shares may take place as payment of whole or part of the purchase price of company acquisitions and on NASDAQ OMX Stockholm in order to finance company acquisitions or other transactions.

CEO comments
During 2010, we created value for our shareholders in a variety of ways. The shareholder dividend increased by just over 30 percent to SEK 3.50 per share, the return on capital employed increased to 19 percent and the share price increased by 29 percent, from SEK 78 to SEK 101. Thereby, the majority of the key ratios per share have been strengthened. However, most important of all, we reached our most important financial objective, an operating margin of 8 percent, which we promised as long ago as 2008, in conjunction with the listing on the stock exchange. So stated Loomis President, Lars Blecko, in his address to the Annual General Meeting.

He also described the new strategy and goals which will lead to further shareholder value. The strategy entails a higher rate of acquisitions, add-on acquisitions in our existing markets in Europe and the USA, as well as acquisitions on new markets, primarily in Europe but also, in the long-term, in Latin America. Lars Blecko underlined the fact that a move further up the value chain, from CIT towards CMS, that is, from solely Cash in Transit to comprehensive solutions, is an important component of the strategy. He stated that the potential for CMS solutions is substantial in the majority of Loomis’ existing markets, even though the degree of outsourcing of cash management services by the banks is lowest in the USA and Eastern Europe.

Lars Blecko described the Group’s new financial and operational goals, which extend to 2014, as well as the dividend policy. The financial goals include an operating margin of 10 percent and a cash flow from operating activities of a minimum of 85 percent of operating income. He also stated that the dividend for 2010 of 51 percent is directly in the middle of the interval stipulated in the dividend policy, which entail that 40-60 percent of the Group’s net income shall be provided as dividend.

The operational goals include expansion into two new countries per year. Through the acquisition of 60 percent of the Turkish Cash Handling company Erk Armored, which was publicized immediately before the meeting, we are halfway towards our goal, said Lars Blecko. Other operational goals commented on by Lars Blecko are that a minimum of 30% of the operations are to be comprised of CMS and that the portion of non-performing branches shall be less than 15 percent.

When Lars Blecko commented on the acquisition of the cash handling services from the American company Pendum, which were taken over on April 30, 2011, he underlined that the operations are well-suited to the Group’s new strategy, as these operations increased focus on comprehensive cash handling solutions, and expand the CMS offering in the USA.

Lars Blecko returned several times to the theme of how important each of the various components of the strategy are in order for the Group to achieve its new margin target of 10 percent by 2014, at the latest.

With regards to the first quarter 2011, Lars Blecko stated that the operating margin, which has continued to improve, has risen to 7.1 percent, compared with 6.5 percent during the first quarter of 2010, and that operating income, after consideration of exchange rate effects, has increased by MSEK 21. He also highlighted that the organic growth has stabilized, and amounted to 0 percent. In Europe, the organic growth has been negatively impacted by the structural changes in the Spanish banking sector and, in the USA, it has been negatively impacted by Loomis cancelling a number of unprofitable contracts.

In conclusion, Lars Blecko stated that the Group had, during the quarter, delivered exactly what had been promised during autumn 2010; a continued positive development of the operating margin and a large, strategically important acquisition.

This press release is also available at: www.loomis.com

11.05.2011

Alf Göransson
Chairman of the Board

Phone number: +46 10 470 30 00

Loomis offers safe and effective solutions for the distribution, handling and recycling of cash for banks, retailers and other commercial companies via an international network consisting of more than 370 branch offices in 14 European countries and in the US. Loomis has 20 000 employees and a turnover of 11 billion Swedish kronor. Loomis is a midcap listed company on NASDAQ OMX Stockholm.

Loomis AB discloses the information provided herein pursuant to the Swedish Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 7.15 p.m. (CET) on May 11th, 2011.

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