Stockholm, Sweden - 12 March 2015
The shareholders of Transmode AB, reg. no. 556588-9101, are hereby invited to
attend the Annual General Meeting to be held on Thursday 16 April 2015, at
16.00 at the offices of the Company, at Fredsborgsgatan 24, Stockholm, Sweden.
Registration for the meeting will commence at 15.15.
Registration etc.
Shareholders who wish to participate at the Annual General Meeting must
* be registered in the shareholders' register maintained by Euroclear Sweden
AB ("Euroclear") on Friday 10 April 2015, and
* notify Transmode at:
* the Company's web page www.transmode.com (not available for legal
persons)
* Transmode AB, Årsstämman, Box 42114, 126 14 Stockholm,
* or by phone, +46 8 410 881 01
no later than on Friday 10 April 2015. The notification shall include the
shareholder's name, personal or corporate identity number, number of shares
held, address, telephone number and information regarding assistants and, where
applicable, representatives, wishing to attend the Meeting.
Any personal record data from powers of attorney and the register of
shareholders maintained by Euroclear will be used for necessary registration and
preparation of the voting list for the Annual General Meeting.
Authorised representatives etc.
A shareholder who will be represented by a proxy at the Meeting shall issue a
dated power of attorney for such proxy. A power of attorney issued by a legal
entity shall be accompanied by a certified copy of a certificate of registration
or similar document ("Registration Certificate") for such legal entity. The
Registration Certificate and the power of attorney cannot be older than one
year, however not when the power of attorney according to its wording is valid
for a longer period, maximum five years. The proxy form is available on
Transmodes' web page: www.transmode.com.
Original powers of attorney, Registration Certificates and other documents of
authorization should be received by the Company at the address mentioned above
not later than on Friday 10 April 2015.
Nominee-registered shares
Shareholders whose shares have been registered in the name of a nominee must, in
order to be entitled to exercise voting rights at the Annual General Meeting,
temporarily register their shares with Euroclear in their own name. A
shareholder who wishes to be recorded in the share register in his/her own name
must notify his/her nominee thereof in due time before Friday 10 April 2015, at
which day such registration shall be effected.
Number of shares and votes
Transmode has on the date of this notice 27,788,676 issued shares. Each share
represents one vote. The Company holds 79 440 own shares on the date of this
notice.
Shareholders' right to request information
The shareholders present at the Annual General Meeting have a right to request
information regarding the matters on the agenda or the Company's financial
situation in accordance with Chapter 7 Section 32 of the Swedish Companies Act
(2005:551).
Proposed agenda
1. Opening of the Meeting.
2. Election of Chairman of the Meeting.
3. Drawing up and approval of the voting list.
4. Approval of the agenda.
5. Election of one or two persons to verify the minutes.
6. Determination of whether the Meeting has been duly convened.
7. Presentation by the Chief Executive Officer.
8. Presentation of the Annual Report and Auditor's Report and of the Group
Annual Report and the Group Auditor's Report.
9. Resolution on the adoption of the Profit and Loss Statement and the Balance
Sheet and of the Group Profit and Loss Statement and the Group Balance Sheet.
10. Resolution on allocation of the Company's result in accordance with the
adopted Balance Sheet.
11. Resolution on discharge from liability of the members of the Board of
Directors and the Chief Executive Officer.
12. Decision on the number of members of the Board of Directors.
13. Election of members of the Board of Directors and the Chairman of the Board
of Directors.
14. Election of auditor.
15. Decision on the remuneration that shall be paid to the Board of Directors
and the auditor.
16. Resolution on the Nomination Committee for the Annual General Meeting.
17. Resolution on guidelines for remuneration to the senior executives.
18. Resolution on incentive programme 2015.
19. Closing of the Meeting.
Proposed resolutions:
Item 2, Chairman of the Meeting
The Nomination Committee proposes that Tom Nyman is appointed Chairman of the
Meeting.
Item 10, Proposal concerning distribution of dividends
The Board of Directors proposes that of the funds at the disposal of the
Company, MSEK 71.5, SEK 1.95 per share shall be distributed to the shareholders
as dividend and that the remaining funds at the disposal of the Company shall be
carried forward.
As record day for the dividends, the Board of Directors proposes Monday 20 April
2015. If the Annual General Meeting resolves in accordance with the proposal,
the dividends are estimated to be paid out via Euroclear on Thursday 23 April
2015.
Item 12, Decision on the number of members of the Board of Directors
The Nomination Committee proposes that the Board of Directors consists of seven
ordinary members with no deputies.
Item 13, Election of members of the Board of Directors and the Chairman of the
Board of Directors
The Nomination Committee proposes that Torbjörn Nilsson, Helena Nordman-Knutson,
Tom Nyman, Axel Roos, Kevin Taylor and Roland Thornton are re-elected as members
of the Board of Directors and Ian Jenks is elected as new member of the Board of
Directors. Gerd Tenzer has declined re-election.
The Nomination Committee proposes that Tom Nyman is re-elected as Chairman of
the Board of Directors.
Item 14, Election of auditor
The Nomination Committee proposes that PwC, with the authorised public
accountant Johan Engstam as auditor in charge, is appointed as auditor for a
term until the close of the Annual General Meeting 2016.
Item 15, Remuneration to the Board of Directors and the auditor
The Nomination Committee proposes that the Chairman of the Board of Directors
shall receive a remuneration amounting to SEK 400,000 (SEK 325,000 for 2014),
that Torbjörn Nilsson, Helena Nordman-Knutson and Axel Roos each receives a
remuneration amounting to SEK 225,000 (SEK 200,000 for 2014), that Kevin Taylor
and Roland Thornton receives a remuneration amounting to SEK 325,000[1] (SEK
300,000 for 2014) and that Ian Jenks receives a remuneration amounting to SEK
275,000[2] SEK. Total remuneration to the Board of Directors is thereby proposed
to amount to SEK 2,000,000 (SEK 1,775,000 for 2014).
In addition, it is proposed that the chairman shall be authorised to allocate
SEK 180,000 (SEK 180,000 for 2014) for committee work if deemed appropriate. In
the event that the chairman participates in committee work, the chairman shall
be entitled to the same remuneration as other members of such committee.
A member of the Board of Directors may, if fiscal conditions permit and provided
that it is cost neutral for the Company, invoice the remuneration.
The auditor shall be entitled to a fee in accordance with approved invoices.
[1] The higher remuneration is motivated by a greater amount of time since Kevin
Taylor lives in Hong Kong and Roland Thornton lives in the USA.
[2] The higher remuneration is motivated by a greater amount of time since Ian
Jenks lives in the United Kingdom.
Item 16, Resolution on the Nomination Committee for the Annual General Meeting
The Nomination Committee proposes that the Annual General Meeting resolves upon
the adoption of the following guidelines for appointment of the Nominating
Committee. The guidelines shall apply until a resolution regarding change of the
procedure for nominating the Nomination Committee is resolved by the General
Meeting. The Company shall have a Nomination Committee consisting of four
members; one to be appointed by each of the three shareholders or group of
shareholders controlling the greatest number of votes and the Chairman of the
Board of Directors. The Chairman of the Nomination Committee shall be the member
who has been appointed by the shareholder controlling the greatest number of
votes, unless the members decide differently.
The Nomination Committee shall be formed based on shareholding statistics from
Euroclear as per the last banking day in August the year before the Annual
General Meeting, and other information on shareholding which is available to the
Company at that point in time.
The names of the members and the names of the shareholders they have been
appointed by shall be announced as soon as they have been appointed.
If, during the Nomination Committee's term of office, one or more shareholders
who have appointed a member/members to the Nomination Committee no longer are
among the three shareholders controlling the greatest number of votes, the
members appointed by such shareholder(s) shall resign and be replaced by a new
member/members appointed by the shareholder(s) that at that time is/are among
the three shareholder(s) controlling the greatest number of votes who have not
already appointed a member to the Nomination Committee. Unless specific reasons
are at hand, no changes shall occur in the Nomination Committee's composition if
merely marginal changes in the number of votes have occurred, or if the changes
have occurred later than three months prior to the Annual General Meeting.
The Nomination Committee shall draw up proposals, on the issues mentioned below,
for presentation to and decision by the Annual General Meeting:
a. proposal for the Chairman of the Annual General Meeting;
b. proposal for Board of Directors;
c. proposal for Chairman of the Board of Directors;
d. proposal for remuneration and other compensation to each member of the Board
of Directors for work of the Board of Directors and compensation for
committee work;
e. proposal for auditor; and
f. proposal for remuneration to the auditor.
Item 17, Resolution on guidelines for remuneration to the senior executives
The Board of Directors has prepared a proposal regarding principles for
remuneration and other employment terms of the senior executives.
Remuneration and other benefits for the senior executives consist of base
salary, a variable part, pension, other customary benefits and the possibility
to participate in the share savings program that is proposed to the annual
general meeting and possible other future long term incentive programmes of
Transmode. The total remuneration shall be in accordance with market practice
and be competitive and reflect the officers' areas of responsibility, the
complexity of the position and the individual's competence and performance.
For the Chief Executive Officer the variable remuneration shall not exceed 80
percent of the base salary. For the Company's three region managers the variable
remuneration shall not exceed 113 percent of the base salary. For other members
of the management group the variable part shall not exceed half of the base
salary.
The variable remuneration shall be based on the achievement of various targets
determined by the Board of Directors, and will primarily be connected to the
Company's overall financial targets and to a certain extent include the
individual performance by the officer.
The variable remuneration shall be conditional upon that the Company does not
show any loss for the year the remuneration refers to. The variable remuneration
shall not entitle to pension benefits but entitles to holiday pay.
Item 18, Resolution on incentive programme 2015
A Implementation of share savings program 2015
The Board proposes that the Annual General Meeting resolves to implement a long
term incentive program 2015 ("LTIP") in the form of a share savings program for
all employees in the Company. The principal objectives of the Board's proposal
for the LTIP is to strengthen the Company's ability to attract and retain key
employees, motivate personnel on all levels and markets, create a long-term
focus on the Company's profitability and growth and further align the
participants' interest with the interest of the shareholders. The LTIP comprises
all approximately 290 employees within Transmode, divided into the following
four categories: (i) chief executive officer, (ii) senior executives, (iii)
senior management and specialists, and (iv) other employees.
Each participant is expected to invest a maximum of 3 to 5 percent, depending on
category, of his/her monthly gross base salary for purchase of savings shares.
Employees who choose to participate in the LTIP will, provided they make a
personal investment in shares in Transmode (so-called saving shares), be
allotted, free of charge, shares in Transmode (by so-called matching share
rights and performance share rights) approximately three years after their
investment (the vesting period). In order for matching share rights to vest and
give the participant a right to receive shares in Transmode, the participant
must have been continuously employed by Transmode during the vesting period and
not having divested any saving shares during the vesting period and Transmode
shall in average during 2015 - 2017 have achieved an operating margin at least
above the threshold of eight percent.
In addition to the above, performance share rights can be allotted to the
employees. For these performance share rights to vest and give right to shares
in Transmode, certain challenging financial performance conditions for Earning
Per Share (EPS), as specified by the Board, must have been fulfilled and the
participant must have been continuously employed by Transmode during the vesting
period and not having divested any saving shares during the vesting period.
Provided that the conditions for receiving matching share rights are fulfilled,
and subject to the certain performance conditions based on Transmode's financial
objectives during 2015-2017 each saving share that the participants have
invested in entitles the participants to receive, free of charge, performance
share rights in accordance with the following: (i) the chief executive officer
is entitled to receive a maximum of four performance share rights, (ii) senior
executives are entitled to receive a maximum of three performance share rights,
(iii) senior management and specialists are entitled to receive a maximum of two
performance share rights, and (iv) other employees are entitled to receive a
maximum of one half performance share right.
The LTIP involves a maximum allotment of 161,200 shares in Transmode (of which a
maximum of 68,500 shares as a result of matching share rights and a maximum of
92,700 shares as a result of performance share rights), corresponding to
approximately 0.58 percent of the total number of outstanding shares and votes
in Transmode at the time of the proposal.
To ensure delivery of shares in Transmode under the LTIP, the Board proposes in
accordance with item B below that the Board shall be authorised to decide on
repurchase of shares on Nasdaq Stockholm or another regulated market. The Board
proposes that delivery of shares can also instead be arranged for by Transmode
entering into a share swap agreement with a third party, whereby such third
party shall in its own name acquire and transfer shares in Transmode to
employees that participate in the LTIP, as determined by the Board.
The preliminary total cost for the LTIP, based on certain assumptions set out in
the Board's complete proposal, equals approximately SEK 7.2 m at 0 percent of
performance shares and approximately SEK 16.9 m at 100 percent of performance
shares, including SEK 2.2 m and SEK 5.2 m respectively in social security costs.
A resolution to introduce the LTIP, in accordance with the Board's proposal, is
valid where supported by shareholders with at least nine-tenths of the votes
cast as well as the shares represented at the Annual General Meeting.
B Authorisation for the Board to repurchase the Company's own shares
In order to ensure delivery of shares under the LTIP, the Board of Directors
proposes that the Annual General Meeting authorises the Board to pass a
resolution on repurchasing the Company's own shares in accordance with the
following conditions:
1. The repurchase of shares shall take place on Nasdaq Stockholm or another
regulated market in accordance with the rules regarding purchase and sale of
own shares as set out in the Nasdaq Stockholm Rule Book for Issuers
2. Repurchase of shares may take place on one or more occasions during the
period up until the next Annual General Meeting in the Company
3. So many shares may be repurchased up to an amount where the Company's
holding does not at any time exceed 1.6 percent of the total number of
shares and votes in the Company (comprising all incentive programmes
resolved on by the annual general meetings 2013-2015)
4. Repurchase of shares at Nasdaq Stockholm may occur at a price within the
share price interval registered at that time, where the share price interval
means the difference between the highest buying price and the lowest selling
price
5. Payment for the shares shall be made in cash
A valid resolution requires approval of shareholders representing at least two-
thirds of the votes cast as well as the shares represented at the Annual General
Meeting.
C Transfer of shares
The Board proposes that the Annual General Meeting resolves on the transfer of a
maximum number of 161,200 shares in the Company, corresponding to 0.58 percent
of the total number of shares and votes in the Company at the time of the
proposal, to employees in the Company participating in the LTIP, in accordance
with the above. It is proposed that the shares to be transferred shall consist
of treasury shares.
Transfer may take place during the period until the next Annual General Meeting,
to a maximum number of approximately 290 employees in the Company. The transfer
is related to the LTIP as described above under item A.
The Board is of the opinion that it is to the advantage of the Company and the
shareholders that the employees in this way have an opportunity to become
shareholders in the Company. A shareholding creates an increased common interest
between employees and owners and is expected to have a performance enhancing
effect.
A valid resolution requires approval of shareholders representing at least nine-
tenths of the votes cast as well as the shares represented at the Annual General
Meeting.
______________________
The annual report, the auditor's report and complete proposals and other
documentation in accordance with the Companies Act will be available at the
Company's head office no later than on 26 March 2015 and in electronic format at
the Company's web page, www.transmode.com. The documentation will also be sent
free of charge to the shareholder who so requests and states its address.
______________
Stockholm, March 2015
TRANSMODE AB (PUBL)
The Board of Directors
The information in this announcement is required to be disclosed by Transmode AB
under the Swedish Securities Markets Act (Sw. lagen om värdepappersmarknaden).
This information was released for publication at 09:00 AM CET on 12 March 2015.
This is a translation of the Swedish original. In case of any inconsistency
between the Swedish and English version, the Swedish version shall prevail.
For more information please contact:
Johan Wilsby
Chief Financial Officer
Transmode AB
Phone: +46 8 410 88 189
E-Mail: johan.wilsby@transmode.com
About Transmode
Transmode is a global provider of packet-optical networking solutions that
enable fixed line and mobile network operators to cost effectively address the
capacity needs created by the rapid growth in video and data traffic. These
solutions are important building blocks in next-generation high-speed optical
networks that support services such as broadband backhaul, mobile data backhaul,
video delivery services and cloud computing. Transmode's solutions are designed
to increase the capacity, flexibility and functionality of metro and regional
networks and are based on Wavelength Division Multiplexing (WDM) and transport
technologies such as Ethernet. Transmode's Native Packet Optical 2.0
architecture gives customers key advantages such as cost efficient Ethernet
services, ultra-low latency, low power consumption and future proof network
design.
Transmode is headquartered in Stockholm, Sweden and is listed on the NASDAQ OMX
Stockholm Exchange (TRMO). Since 2000 the company has installed more than
45,000 systems for over 550 fixed and mobile network operators, service
providers, large enterprises and public institutions in over 50 countries across
the globe.
For additional information about Transmode, please visit www.transmode.com.
[HUG#1902245]
