STOCKHOLM, Sweden, April 9, 2003 (PRIMEZONE) -- Intrum Justitia AB's (Other OTC:INJJF) Board of Directors has decided to propose to the Company's Annual General Meeting, to be held on May 13, 2003, that the meeting approve the issue of a debenture with detachable warrants, to establish a stock option programme for around 20 senior executives.
- Intrum Justitia's Board of Directors will propose to the Annual General Meeting a stock option programme for around 20 senior executives. According to the proposal, holders of the options receives the right to subscribe for shares in Intrum Justitia during the period 1 July, 2007, inclusive, to 30 May, 2009, inclusive. The subscription price will be 130 percent of the highest price paid for the Intrum Justitia share on the O-list of the Stockholm Stock Exchange during the period 1 January to 30 June 2003, inclusive.
- The right to exercise the stock options to acquire shares will be determined by the development of Intrum Justitia Group's profit during the years 2003 - 2006.
- For the options to be exercised in full, earnings per share, adjusted for goodwill amortization, must increase by an average of more than 10 percent annually over the above-mentioned period of time.
- The maximum allocation to the CEO is 500,000 options. Other participants are eligible for an allocation of between 75,000 and 150,000 options.
"The proposed programme is conditional on not only strong growth in profits over the next four years, but also strong growth in the Company's share price, for the result to benefit those participating in the program," commented Board Chairman Bo Ingemarson.
Summary of the Board's proposals
The stock option programme is intended to comprise a total of 2,525,000 stock options, for allocation to around twenty persons in senior positions. It is proposed that holders of options will be entitled to buy shares in Intrum Justitia during the period between 1 July, 2007 and May 30, 2009 at a price corresponding to 130 percent of the highest price paid for Intrum Justitia shares on the O-list of the Stockholm Stock Exchange during the period 1 January to 30 June, 2003, inclusive. The right to exercise the stock options into shares will be determined by the development Intrum Justitia Group's profits during the financial years 2003 - 2006. For the options to be exercised in full, earnings per share, adjusted for goodwill amortization, must increase by an average of more than 10 percent annually over the above-mentioned period of time.
It is intended that the stock options will be hedged -- both with regardsto the shares that can be transferred to employees in the stock option program as well as costs arising in connection with the program (above all, social welfare contributions) - through an issue of shares to a wholly owned subsidiary, by a debenture loan amounting to SEK 100 with 3,358,250 detachable warrants, conferring the entitlement to subscribe for shares in Intrum Justitia AB.
The stock options will be allocated free of charge to employees in the Intrum Justitia Group, in the course of which it is intended that the CEO will be allocated a maximum of 500,000 options and others eligible to participate will be allocated between 75,000 and 150,000 options. Board Members who are not also employees of Intrum Justitia are not entitled to take part in the programme. Assuming that all stock options, and therefore all warrants, are exercised, this will lead to an increase in Intrum Justitia's share capital of SEK 67,165, which corresponds to approximately 4 percent of share capital and voting rights.
Based on Intrum Justitia Group's profit from the financial year 2002, exercise of all options proposed would result in the following dilution of earnings per share. The calculation has been performed in accordance with Recommendation RR18 of the Swedish Financial Accounting Standards Council, and is based on an assumed subscription price and a share price of SEK 53.30 and SEK 37.00, respectively.
Earnings per share:
Based on the existing number of shares (84,985,604): SEK 2.04 . Based on the existing number of shares, plus the proposed options (84,985,604 + 3,358,250): SEK 2.03 (0.8 percent dilution)
The aim of the stock option program is to raise the level of commitment on the part of the personnel concerned to the growth of the Company's value, to facilitate new recruitment long-term and retain key personnel as well as to retain those included in the program in the Company.
For further information, please contact: Bo Ingemarson, Chairman Tel: +46 703 49 45 77 Anders Antonsson, Director of Communications Tel: +46 8 546 10 206 Mobile: +46 703 36 78 18 E-mail: a.antonsson@se.intrum.com
Intrum Justitia is Europe's leading Receivables Management Services Group. The Group has revenues of SEK 2.8 billion and has about 2,700 employees in 21 European countries. In France the Group provides outsourcing services at all stages of the receivables management process to a diverse portfolio of clients, including well-known companies in the telecom, bank and insurance industry.
Intrum Justitia's objective is to be a leading provider of RMS in Europe through excellence in local client care, ledger administration and debt collection and by measurably improving clients' cash flow and long-term profitability. The Group offers efficient high quality management of commercial and consumer receivables in all phases in the RMS process. Intrum Justitia has a growth strategy and aims to take active part in consolidating its industry. Intrum Justitia is listed on Stockholmsborsen, the Stockholm Exchange, ticker IJ. For more information, please visit www.intrum.com
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