Annual General Meeting of Loomis AB (publ)
At today's Annual General Meeting of Loomis AB (publ) the following was resolved:
Board of Directors and auditor
The Annual General Meeting resolved that the number of Board members shall be six with no deputy members. The Meeting re-elected Alf Göransson, Jan Svensson, Ulrik Svensson, Ingrid Bonde, Cecilia Daun Wennborg and Jarl Dahlfors 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 2,250,000 (including fees for committee work) apportioned so that the Chairman of the Board shall receive SEK 600,000 and the other board members, except for the managing director, SEK 300,000 each. The Chairman of the Audit Committee shall receive SEK 200,000, the Chairman of the Remuneration Committee SEK 100,000, a member of the Audit Committee SEK 100,000 and a member of the Remuneration Committee SEK 50,000. As company auditor, the Meeting re-elected the accounting firm PricewaterhouseCoopers AB, with authorized public accountant Patrik Adolfsson as auditor in charge, for a period of one year. The auditor’s fees were resolved to be paid as per agreement.
The Meeting re-elected Jan Svensson (Investment AB Latour, etc.), Mikael Ekdahl (Melker Schörling AB), Marianne Nilsson (Swedbank Robur fonder), Johan Strandberg (SEB Fonder) and Henrik Didner (Didner & Gerge Fonder) as members of the Nomination Committee before the Annual General Meeting 2016. Jan Svensson was appointed Chairman of the Committee.
In accordance with the proposal of the Board, the Meeting resolved to declare a dividend of SEK 6.00 per share.
May 8, 2015 was determined as record date for dividend and payment from Euroclear Sweden AB is expected to commence on May 13, 2015.
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 defined contribution 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.
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 350 key 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 2016 and be payable by (i) 2/3 in cash at the outset of 2016 and (ii) 1/3 in shares of series B (the “Bonus Shares”) at the outset of 2017. 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 2017. 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.
Loomis has a long history with roots that go back to the Wild West. The Company has since developed into the world’s leading specialist in cash handling and has now around 21,000 employees at more than 400 branches in over 20 countries.
This past year was an exciting and successful one for Loomis. I am proud to say that we, during the year, reached our financial targets according to plan, and launched ambitious new targets with our sights set on 2017 and continued value creation.
I would like to describe the three stages of our development. Before our stock exchange listing in 2008 our most important priority was quality. Once we had achieved good quality in our services we shifted our focus to profitability. This has been and remains a top priority for us. Now that we have reached an operating margin of more than 10 percent, it is time for the next stage: an increased focus on growth. The most important ingredients in our efforts to achieve our growth target of USD 17 billion in revenue by 2017 are continuing to grow our CMS services in the USA, increasing Loomis SafePoint sales, implementing International Services in all of our markets and making acquisitions.
We have also stated our intention of continuing to improve our margin and we have set our target at 10–12 percent up to and until 2017. The reason for the range is that we know that our growth activities – both acquired and organic growth – may have a negative effect on the margin. Our efforts to reduce the number of underperforming branches by continuing to work systematically according to the Loomis Model will continue at the same pace. The Loomis Model is the key to continued margin improvement. Our motto is “everything can always be done better.”
Loomis is an important actor in the society, which of course means we act responsibly in all of the locations where we operate and in our relationships with our stakeholders. Loomis aims to act responsibly from a financial, social and an environmental perspective. The foundation for our sustainability work is our values and our Code of Conduct, which we continuously work according to throughout the organization. The safety of our employees is our top priority.
Creating long-term, sustainable profitability and a stable company allows us take responsibility and act responsibly. Minimizing our company’s environmental impact through effective route planning and using energy-efficient modes of transport is both good for the environment and profitable.
All in all, 2014 was a very good year for Loomis, one in which we also laid the foundations for the next exciting development for the Company and its shareholders.
This press release is also available at: www.loomis.com
6 May 2015
Chairman of the Board
Phone number: 46 10 470 30 00
Loomis offers secure and effective comprehensive solutions for the distribution, handling, storage and recycling of cash and other valuables. Loomis’ customers are banks, retailers and other companies. Loomis operates through an international network of around 400 branches in more than 20 countries. Loomis employs around 21,000 people and had revenue in 2014 of SEK 13.5 billion. Loomis is listed on NASDAQ OMX Stockholm Large-Cap list.