SinterCast Annual General Meeting 2012
Press Release
For Immediate Distribution
[Stockholm, 25 May 2012] - The SinterCast AB (publ) Annual General Meeting (AGM)
was held on 24 May 2012 in Stockholm. During the AGM, presentations were
provided by Mr Drew Winter, Editor-in-Chief of WardsAuto World and by Dr Steve
Dawson, President & CEO. The recorded presentations will be available on the
SinterCast website on or before Wednesday 30 May.
Mr Winter provided a warm and insightful overview of the history of new product
development in the automotive industry. With references to the initial euphoria
that surrounded technologies such as plastic body panels in the 1980's, and
better-known technologies such as all-aluminium vehicles, biofuels and the
recent focus on vehicle electrification, Mr Winter showed that many promising
new technologies never reach the production stage, and if they do, they rarely
live up to the initial technical claims. The successful establishment a new
technology in the competitive and conservative automotive industry requires a
combination of technical innovation, credibility, determination and patience.
Mr Winter acknowledged that SinterCast had brought this combination of
attributes to the industry and had succeeded to establish Compacted Graphite
Iron as a viable high volume production material, and SinterCast as a respected
brand. In closing, Mr Winter shared his experiences of road testing the Ford
Super-Duty pick-up truck, powered by a 6.7 litre V8 diesel engine with a
SinterCast-CGI cylinder block, referring to the the new Power Stroke engine as
"a magnificent piece of machinery, arguably the finest heavy-duty pick-up diesel
of the modern era" and congratulated SinterCast and its shareholders on their
contribution to the success of the engine.
During the CEO presentation, Dr Dawson presented an overview of recent market
activities and provided an outlook for SinterCast's potential market
development. Dr Dawson noted that, since the fourth quarter of 2011, the
annualised series production had stabilised, but that this was primarily due to
changes in two programmes and that the overall growth trend and outlook remained
positive. Dr Dawson noted that series production grew by 19% since the last
AGM, from 1.3 million Engine Equivalents to 1.6 million Engine Equivalents, that
the compound annual growth rate over the past five years was 30%, and that the
components that are currently in series production have a mature potential of
more than two million Engine Equivalents. Putting this growth into perspective,
Dr Dawson stated that SinterCast required more than 20 years to break the
annualised one million Engine Equivalent barrier in October 2010 and, with
positive overall market conditions, the two million Engine Equivalent milestone
could fall before the next AGM. Beyond the current series production, Dr Dawson
identified near-term growth opportunities for CGI, including increased diesel
penetration in North America, new commercial vehicle engine commitments in Asia,
the application of CGI for the first high volume petrol engine, and continued
demand for new installations, particularly in Asia. Although no new
installation commitments have been secured prior to the AGM, the Company targets
at least three new installations before year-end.
Dr Dawson noted that the global development intensity for CGI had increased
significantly over the past year and that SinterCast had used its financial
strength to expand the commercial and technical resources of the company in
order to position itself for future growth. The expansion from 15 to 20
employees since the last AGM results in an increased expense level, particularly
during 2012 due to establishment costs for recruiting and new offices in China
and Korea. However, the improved market presence and the additional development
resources are a key part of the overall strategy of expanding SinterCast's
technical offering, promoting new CGI applications and securing new production
opportunities, and ultimately of realising the longstanding goal of millions of
SinterCast-CGI vehicles on the roads.
During the AGM, Ulla-Britt Fräjdin-Hellqvist, Aage Figenschou, Andrea Fessler,
Robert Dover, Laurence Vine-Chatterton and Steve Dawson were re-elected as Board
members. Ulla-Britt Fräjdin-Hellqvist was re-appointed as Chairman and Aage
Figenschou was re-appointed as Vice-Chairman.
The AGM also decided upon the constitution of the Nomination Committee until the
next AGM, comprised of returning members Ulla-Britt Fräjdin-Hellqvist and
Torbjörn Nordberg. Karl-Arne Henriksson was elected as a new member. After
serving on the Nomination Committee since 2007, Lars Ahlström retired from the
Nomination Committee and was acknowledged and thanked for his service by the
shareholders. All of the proposals presented to AGM were approved by the
shareholders.
For and on behalf of the Board of Directors:
Ulla-Britt Fräjdin-Hellqvist Steve Dawson
Chairman President & CEO
Tel: +46 8 660 7750 Tel: +46 8 660 7750
e-mail: u-b.frajdin-hellqvist@sintercast.com e-mail: steve.dawson@sintercast.com
SinterCast is the world's leading supplier of process control technology for the
reliable high volume production of Compacted Graphite Iron (CGI). With at least
75% higher tensile strength, 45% higher stiffness and approximately double the
fatigue strength of conventional grey cast iron and aluminium, CGI allows engine
designers to improve performance, fuel economy and durability while reducing
engine weight, noise and emissions. The SinterCast technology is used for the
production of more than 50 CGI components, ranging from 2 kg to 17 tonnes, all
using the same proven process control technology. The end-users of SinterCast-
CGI components include Aston Martin, Audi, Cameron Compression, Caterpillar,
Chrysler, DAF Trucks, Ford, Ford-Otosan, General Electric Transportation
Systems, General Motors, Hyundai, Jaguar, Jeep, Kia, Lancia, Land Rover, MAN,
Navistar, Porsche, PSA Peugeot-Citroën, Renault, Rolls-Royce Power Engineering,
Scania, Toyota, VM Motori, Volkswagen, Volvo and Waukesha Engine. The SinterCast
share is quoted on the Small Cap segment of the NASDAQ OMX stock exchange
(Stockholmsbörsen: SINT). For more information: www.sintercast.com
END