The shareholders of HMS Networks AB (publ) are hereby invited to the Annual General Meeting, which will be held at 10.30 a.m on Wednesday 25 April 2018 at the HMS head office, Stationsgatan 37, Halmstad. Registration for the Annual General Meeting will begin at 9.30 a.m.
Right to participate in the Annual General Meeting
Shareholders who wish to participate in the Annual General Meeting must be registered in the share register kept by Euroclear Sweden (the Swedish Central Securities Depository) on Thursday 19 April 2018 and give notice of their intention to participate in the Annual General Meeting to the Company no later than on Thursday 19 April 2018 preferably before 4 p.m.
Notification shall be made by phone +46 (0)35-17 29 00, in writing to Computershare AB, "HMS Networks AB's Annual General Meeting" Box 610, 182 16 Danderyd, or via the website: www.hms-networks.com. The notification should include name, personal ID number/CIN, shareholding, address, daytime telephone number and, when applicable, information on assistants (no more than two) or deputies who will be attending. The notification should include, where applicable, complete authorisation documents such as registration certificate, power of attorney, or equivalent.
Proxies
If a shareholder is represented by a proxy, the proxy should be issued with a power of attorney dated for this day. If the power of attorney is issued by a legal entity, a certified copy of the registration certificate, or other document demonstrating the signatory's authority to sign for the legal entity, must be included. The power of attorney and any registration certificate may not be more than one year old, unless a longer period of validity is stated in the power of attorney (no more than five years). The power of attorney in original and, if applicable, registration certificate must be sent to Computershare AB, "HMS Networks AB's Annual General Meeting", Box 610, 182 16 Danderyd, well in advance of the Annual General Meeting. A form of power of attorney is available on the HMS website www.hms-networks.com and at the Company's head office.
Nominee registered shares
Shareholders whose shares are registered in the name of a nominee through a bank or Securities Register Center must temporarily re-register the shares in their own name to be able to participate at the Meeting. Such registration must be done at Euroclear Sweden no later than Thursday 19 April 2018, which means that shareholders must notify their intentions on this matter to the nominee well in advance of the stated date.
Proposed agenda
The Nomination Committee's proposals
Election of Chairman of the Meeting, determination of the number of Board Members and Deputies and Auditors, determination of fees payable to Board Members and Auditor and election of Board Members and election of Auditor (item 2 and 13-16)
The Nomination Committee for 2018, comprising Chairman Jan Svensson (Investment AB Latour), Evert Carlsson (Swedbank Robur Funds), Per Trygg (SEB Funds), Staffan Dahlström (own holding) and Charlotte Brogren (Chairman of the Board), proposes:
Proposals from the Board of Directors
Resolution concerning the allocation of the Company's profit as set forth in the adopted Balance Sheet (item 10)
The Board proposes that the Parent Company's profit of SEK 3,100 and retained earnings of SEK 97,548,915, in total SEK 97,552,015 is allocated so that SEK 1.50 per share, corresponding to SEK 69,894,065 in total is distributed to the shareholders as dividend and that the remaining amount is carried forward. The parent company's equity is expected be strengthened during 2018 through dividends from subsidiaries. The proposed record date for the dividend is 27 April 2018. If the Annual General Meeting approves the Board's proposal, the estimated date for payment of the dividend from Euroclear Sweden is Thursday 3 May 2018.
Determination of guidelines for remuneration to senior executives (item 17)
The Board of Directors' proposal for guidelines for remuneration to senior executives entails in principal that the total remuneration shall be based on market conditions and be competitive. The benefits shall comprise fixed salary, variable cash salary, long-term incentive programs and pension. The variable cash salary to the senior executives shall be based on predetermined and measurable financial objectives for the group and shall in principal be based on growth in combination with profitability. In addition, individual objectives can be determined. The maximum individual annual amount shall not exceed 50 per cent of the basic salary. Variable cash salary can also be paid in the form of long-term incentive programs. Pension benefits shall be fee-based and for the CEO, the pension shall amount to 35 per cent of the fixed monthly salary up to 28,5 price base amounts, and to 25 per cent on fixed salary exceeding such amount. For other senior executives, the ITP-agreement will apply. The Board shall have the right to deviate from the guidelines in individual cases if there are particular grounds for such deviation.
Resolution on the Board of Directors' proposal for authorisation of the Board to resolve on new share issues (item 18)
The Board of Directors proposes that the Annual General Meeting resolves to authorise the Board of Directors to resolve on new share issues in accordance with the following conditions:
The purpose of the authorisation, and the reason for the deviation from the shareholders' preferential right, is to enable the company to finance or carry out, in whole or in part, company acquisitions with the company's own shares. There have been requests from sellers of companies to receive shares in HMS Networks as payment in conjunction with acquisitions and in case of acquisitions of smaller entrepreneurial companies it might work as an important incentive for the seller to receive shares in HMS Networks. The authorisation is only valid at possible acquisitions and if no acquisitions is completed in which the whole or part of the payment is paid in form of HMS Networks shares the authorisation will not be utilised.
Under the Swedish Companies Act, the resolution of the general meeting on authorisation for the Board of Directors to resolve on new share issues requires the support of shareholders representing at least two-thirds of both the number of votes cast and the shares represented at the meeting in order to be valid.
Resolution on the Board of Directors' proposal for authorisation to resolve on repurchase of the company's own shares within existing Share Saving Plan 2018-2021 (item 19)
The Board of Directors of HMS Networks AB (publ) proposes that the Annual General Meeting resolves to authorise the Board to resolve on repurchase of own shares within Share Saving Plan 2018-2021.
At the 2017 Annual General Meeting it was resolved to implement Share Saving Plan 2018-2021, comprising an authorisation for the Board of Directors to repurchase own shares in order to hedge the company's undertakings to delivery shares to the participants of the program. Since the Annual General Meeting 2017, the Board of Directors has, based on the authorisation, repurchased own shares and the company's holding of own shares as of the date of this proposal amounts to 222,825 shares. Depending on the outcome in previous share saving programs, the company may be in need of more shares to ensure the delivery of shares to the participants of the Share Saving Plan 2018-2021 and, therefore, the Board of Directors proposes that the Annual General Meeting resolves to authorise the Board to resolve on repurchase of own shares in accordance with the terms of the Share Saving Plan 2018-2021 on the following conditions:
Majority resolution
Under the Swedish Companies Act, the resolution of the general meeting on authorisation for the Board of Directors to resolve on new share issues requires the support of shareholders representing at least two-thirds of both the number of votes cast and the shares represented at the meeting in order to be valid.
Resolution on the Board of Directors' proposal on (a) implementation of a performance based Share Saving Plan 2019-2022 for all employees, (b) authorisation of the Board to resolve on repurchase of own shares within Share Saving Plan 2019 - 2022 and (c) transfer of own shares to participants in Share Saving Plan 2019-2022 (item 20)
A. Implementation of performance based Share Saving Plan 2019-2022 for all employees
The Board of Directors for HMS Networks proposes that the Annual General Meeting resolves on implementation of the below described Share Saving Plan 2019-2022 to all employees, comprising a maximum of 115 000 shares in the company, according to the following principal conditions:
B. Authorisation for the Board of Directors to resolve on repurchase of own shares within Share Saving Plan 2019-2020
To enable the company's delivery of Performance Shares according to Share Saving Plan 2019-2022, the Board of Directors proposes that the Annual General Meeting resolves to authorise the Board to resolve on repurchase of own shares in accordance with the following conditions:
The repurchase is expected to take place in conjunction with the investment period, i.e. during 2019. To the extent that repurchase must be made after the Annual General Meeting 2019 in order to ensure delivery of shares according to the program's maximum amount, a new authorisation for repurchase of shares is required by the next Annual General Meeting.
C. Transfer of own shares to participants in the Share Saving Plan 2019-2022
To be able to deliver Performance Shares under Share Saving Plan 2019-2022, the Board of Directors proposes that the Annual General Meeting resolves on transfer of own shares in accordance with the following conditions:
The reason for deviation from the shareholders' preferential rights is to enable the Company to transfer Performance Shares to the participants in Share Saving Plan 2019-2022.
Estimated costs
The program will generate costs related to the application of IFRS 2 "Share-related remuneration" amounting to approximately MSEK 14.5 and costs for social security contributions of approximately MSEK 5.5 for the shares which are allotted free of charge. The total effect on the income statement is estimated to amount to approximately MSEK 20, distributed over the years 2019-2022.
Costs according to IFRS 2 do not affect the cash flow or equity during the duration of the Share Saving Plan. The acquisition cost of the shares is estimated to approximately MSEK 14.5 and will effect the cash flow and equity in connection with acquisition of the shares. The social security contributions effect the equity continuously, but the cash flow only in 2023, after that the shares has been allotted. Administrative costs for the program is estimated to amount to MSEK 0.5 during the duration of the program.
The above cost-estimate is based on assumptions that just over half of the employees participate in the program, that all participants remains until the end of the program, an investment level per participant based on historical outcome and a maximum outcome on the performance conditions corresponding to two (2) Performance Shares per Saving Share. For the share price at the end of the program, a development corresponding to the outcome of the performance condition earnings per share has been assumed.
Reason for the proposal
The Board of Directors' reason for the abovementioned proposal on Share Saving Plan 2019-2022 is that a personal long-term owner commitment in the company by the employees is expected to stimulate an increased interest for the company's operation and earnings, and to increase the motivation and affinity with the company. The offering and participate on in Share per Saving Share shall be considered as a part of the total remuneration package. Therefore, the Board of Directors assesses that the Share per Saving Share is favorably for both the company and its shareholders. It is the Board of Directors' intention to annually return to the Annual General Meeting with proposals for share saving plans with equivalent conditions and effects. In case the conditions for the assumptions on number of employees that may be offered to participate in the share saving program or otherwise that is the basis for the calculations of the maximum size of the program change, the Board of Directors' intends to return with a supplementary proposal regarding repurchase and transfer of own shares within Share Saving Plan 2019-2022, in order to ensure that all employees as per 31 December 2018 who wish to participate in the program can do so.
Effects on key ratios
As per the date of the Board of Directors' proposal, the number of shares in HMS Networks amounts to 46,818,868. The Share Saving Plan 2019-2022 is expected result in acquisition and transfer of a total of approximately 115,000 shares, which corresponds to approximately 0.25% of the total number of outstanding shares and votes. The key ratio earnings per share is not expected to be effected substantially.
Majority resolution
For a resolution to be adopted under this item, the proposal must be supported by shareholders holding at least nine-tenths of both the number of votes cast, as well as of the number of shares represented at the meeting.
Information at the Annual General Meeting
The Board and the CEO shall at the Annual General Meeting, if any shareholder so requests and the Board believes that it can be done without significant harm to the company, provide information regarding circumstances that may affect the assessment of an item on the agenda, circumstances that can affect the assessment of the company's or its subsidiaries' financial position and the company's relation to other companies within the group.
Available documents
The Annual Report and Auditor's Report for the 2017 financial year, the Board of Directors reasoned statement regarding the proposal for dividend, the Nomination Committee's reasoned statement and the Board of Directors complete proposal regarding items 17-20 and the auditors statement on application of current guidelines for remuneration to senior executives will be available at the company and on the company's website, www.hms - networks.com, as of 4 April 2018, and will be sent to all shareholders who so request and state their postal address. A printed version of the Annual Report may be received by sending address details to [email protected].
Number of shares and votes in the company
At the time of this notice, the total number of shares and votes in the company amounts to 46,818,868. The company's holding of own shares amounts to 222,852, which do not entitle to any voting right as long as the company is the holder of the shares.
....................................................
Halmstad, March 2018
HMS Networks AB (publ)
The Board of Directors
For more information please contact:
CEO Staffan Dahlström, phone: +46-35-17 29 01
CFO Joakim Nideborn, phone: +46-707-72 29 83
This information is such that HMS Networks AB (publ) is required to disclose in accordance with the Swedish Financial Instruments Trading Act and/or the Swedish Securities Market Act. The information was submitted for publication at 14.00 CET on March 23, 2018.
HMS Networks AB (publ) is the leading independent supplier of products for industrial communication and remote management. Reported sales reached SEK 1,183 m in 2017 with more than 94 per cent outside Sweden. Development and manufacturing take place at the headquarter in Halmstad and in Ravensburg, Nivelles and Igualada. Local sales and support are handled by branch offices in Japan, China, Germany, USA, Italy, France, Belgium, Singapore, Spain, India, UK, Finland and Denmark. HMS employs more than 500 people and develops and manufactures solutions for connecting automation devices and systems to industrial networks under the Anybus®, IXXAT® and Intesis® brand and products for remote solutions and control under the eWON® brand. HMS is listed on the NASDAQ OMX in Stockholm, category Mid Cap, Information Technology.
Attachment:http://www.globenewswire.com/NewsRoom/AttachmentNg/99e0625d-d8a7-47cb-a578-c764a5dd9d19