The SinterCast AB (publ) Annual General Meeting (AGM) was held on 19 May 2011 in Stockholm. During the AGM, presentations were provided by Mr Jeffrey Breneman, Executive Director of the United States Coalition for Advanced Diesel Cars (USCADC) and by Dr Steve Dawson, President & CEO. The recorded presentations will be available on the SinterCast website on or before Tuesday 24 May.
Mr Breneman noted that US consumer awareness of advanced diesel passenger cars as a clean and fuel efficient alternative vehicle technology had grown considerably over the last five years and stated that near-term diesel penetration in the US market was forecast to grow from 4.6% in 2010 to 10% in 2015. Although the overall diesel penetration remains low, Mr Breneman showed that, when a diesel option was available, the 2010 diesel take rate for passenger vehicles was 30% while the take rate for pick-ups was 63%. Later this year, the State of California is scheduled to finalise the LEV III tailpipe emission standards and the federal government will propose CAFE standards for 2017-2025 that may require fleet averages as high as 62 mpg by 2025. Once finalised, the US will experience a 12 year period with defined and fixed emissions legislation and requirements for significant gains in vehicle fuel economy. This regulatory stability, combined with the need to meet much stricter fuel efficiency standards in the near term, will provide OEMs with a favourable climate to design and launch diesel vehicles with the confidence that investments can be recovered and profits can be realised. Mr Breneman confirmed the Coalition's belief that the modern diesel engine should be an important part of realising the goal of reduced petroleum use and reduced CO2 emissions, and that diesel is the only technology that can meet the government's objectives today, with no need for infrastructure investment. Mr Breneman committed to continuing to campaign for technology neutral policies that empower consumers to choose the technology that best suits their driving needs.
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's presentation showed that the series production volume continues to increase and that the annualised volume has increased by 55% since the last AGM. The 46 components that are currently in series production have a mature potential of approximately 1.55 million Engine Equivalents, so it is expected that the series production growth will flatten during the second half of 2011 and that further growth will arise as new products come on stream. In addition to the growth in series production, the Company continues to have a positive outlook for new installation opportunities in 2011. Building on the Daedong System 3000 installation in January and the DaeShin Mini-System 3000 installation announced on 17 May, the Company continues to target five installations for the full year.
In closing, Dr Dawson confirmed that the increase in series production, the increased field activities, and the new installation opportunities, have provided a great sense of accomplishment and satisfaction for the SinterCast employees. The Company has expanded its sales and marketing resources in order to promote and secure new growth opportunities and will continue to review its manning to ensure that it has the necessary resources to serve the market demand and realise 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 and Steve Dawson were re-elected as Board members and Laurence Vine-Chatterton was elected as a new member of the Board. Ulla-Britt Fräjdin-Hellqvist was re-appointed as Chairman. The AGM also decided upon the constitution of the Nomination Committee until the next AGM, comprised of Ulla-Britt Fräjdin-Hellqvist, Lars Ahlström, with the primary responsibility to represent large shareholders, and Torbjörn Nordberg, with the primary responsibility to represent small shareholders. All of the proposals presented to AGM were approved by the shareholders.
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