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 five with no deputy members. The Meeting re-elected Alf Göransson, Jan Svensson and Ulrik Svensson and elected Ingrid Bonde och Cecilia Daun Wennborg as new Board members. Alf Göransson was re-elected Chairman of the Board. The fee to the Board members was determined to a total of SEK 1,825,000 (including fees for committee work) apportioned so that the Chairman of the Board shall receive SEK 500,000 and the other Board members SEK 250,000 each. The Chairman of the Audit Committee shall receive SEK 150,000, the Chairman of the Remuneration Committee SEK 75,000, a member of the Audit Committee SEK 75,000 and a member of the Remuneration Committee SEK 25,000.
Nomination Committee
The Meeting re-elected Jan Svensson (Investment AB Latour, etc.), Mikael Ekdahl (Melker Schörling AB) and Marianne Nilsson (Swedbank Robur fonder) and elected Johan Strandberg (SEB Fonder/SEB Trygg Liv) and Henrik Didner (Didner & Gerge Fonder) as new members of the Nomination Committee before the Annual General Meeting 2014. Jan Svensson was appointed Chairman of the Committee.
Dividend
In accordance with the proposal of the Board, the Meeting resolved to declare a dividend of SEK 4.50 per share.
May 10, 2013 was determined as record date for dividend and payment from Euroclear Sweden AB is expected to commence on May 15, 2013.
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 and shall, to the extent management is not subject to pension benefits pursuant to collective agreement (ITP-plan), be provided pursuant to a fee-determined pension plan. 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 will participate in the Incentive Scheme and thereby be entitled to receive a part of the annual bonus in the form of shares in Loomis, provided that certain predetermined and measurable performance criteria are met. The existing principles relates to result improvements 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 annual bonus will be determined at the outset of 2014 and be payable by (i) 2/3 in cash at the outset of 2014 and (ii) 1/3 in shares of series B (the “Bonus Shares”) at the outset of 2015. The number of Bonus 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 2015. 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 enter into a share swap agreement with a third party, whereby the third party in its own name shall acquire and transfer shares in the company to employees participating in the Incentive Scheme.
Comments by the President and CEO
“Two and a half years ago we presented our renewed strategy and our financial and operational goals to be achieved by 2014 at the latest. The operational goals with the highest priorities are to increase the proportion of branches that achieve our profitability goal and to increase the percentage of Cash Management Services (CMS) compared with Cash in Transit (CIT) to 30 percent of total revenue. The most important financial goal is an operating margin (EBITA) of at least 10 percent by 2014 at the latest,” Lars Blecko, President and CEO of Loomis, said in his address.
“I can state that, based on this strategy, in which operational efficiency is key, we have improved our operating margin to 9.0 percent for 2012. I am therefore convinced that we will achieve our goal of an operating margin of 10 percent during 2014 at the latest. An important factor contributing to the improvement is that we have gradually increased the percentage of profitable branches. Since 2010, when we set this goal, the percentage has increased from 74 to 77 percent. Although there is still some way to go before we achieve our goal of 85 percent, the increase is incredibly important for our profitability and operating margin.”
Using successful examples from Karlstad in Sweden, Oslo in Norway and Madison in the USA, Lars Blecko showed how work on improving profitability at the branches had taken place. What all three have in common is that they have made responsibilities clearer, they have clearer divisional roles and all employees are involved in the improvement work. He concludes that there is a huge amount of leverage in increasing efficiency and thus profitability at each and every one of the Group’s branches, which number nearly 400.
Lars Blecko also spoke about the increasing percentage of CMS by describing developments in the USA. “In the USA, Loomis has historically been a ‘transport company’ with a high share of CIT. Over the past 4 to 5 years the percentage of CMS has increased from slightly more than 15 percent to its current level of 26 percent. The increase has mainly come from contracts with smaller bank offices. It is therefore particularly pleasing that in the second quarter of this year we will be starting a partnership with one of the major US banks, taking over its cash management in four locations, including two of the bank’s biggest units in Houston and San Diego.”
Loomis has carried out an advanced analysis of how the use of cash is expected to develop over the coming 10 years. Lars Blecko underlined that this shows that the amount of cash in Loomis’ most important markets will increase even if the share of transactions executed using cash reduces. He concludes that there will be room for organic growth at Loomis in the foreseeable future.
Regarding the results for 2012, Lars Blecko drew attention to a number of highlights. These include the improved operating margin to 9.0 percent, the successful integration of Efectivox in Spain and Vigencia in Argentina, and the fact that Pendum in the USA made a strong contribution. He also noted that earnings per share had increased by 27 percent to SEK 8.90 (7.03) and that the dividend had been increased by 20 percent to SEK 4.50 (3.75).
This press release is also available at: www.loomis.com
06.05.2013
Alf Göransson
Chairman of the Board
Phone number: +46 10 470 30 00
Loomis offers safe and effective comprehensive solutions for the distribution, handling and recycling of cash for banks, retailers and other commercial companies via an international network consisting of almost 400 branch offices in 16 countries. Loomis has 20 000 employees and annual revenue 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 8.20 p.m. (CET) on May 6th, 2013.
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