Redemption

The company receives many questions from shareholders and potential shareholders concerning redemption of preference shares. The following provides a brief summary of the conditions governing redemption.

The company has the facility to redeem the preference shares subject to certain established conditions. These conditions must be approved by the shareholders at a general meeting. To date, no such resolution has been passed, and the company currently has no intention of proposing redemption of preference shares to the shareholders. If, some time in the future, the company should intend to propose such a resolution to the shareholders, a notice calling a general meeting will be issued in the usual way, stating the resolution being proposed.

The conditions for redemption of preference shares are set out in the Articles of Association, which state that redemption of a certain number or all of the preference shares may be carried out following a resolution by the general meeting. Redemption of a certain number of preference shares shall be made pro rata based on the number of preference shares that each preference shareholder owns at the time the general meeting approves the resolution.

The redemption price for each redeemed preference share is set in advance and calculated as follows:

(i) Until the fifth anniversary of the first issue of preference shares (the “Initial Issue”), an amount of SEK 211.25 plus any Available Amount increased by an amount equivalent to the annual rate of interest pursuant to Section 6 of the Articles of Association. The redemption price for each redeemed preference share shall, however, never be less than the share’s quotient value.

(ii) From the fifth anniversary until the tenth anniversary of the Initial Issue, an amount of SEK 195.00 plus any Available Amount increased by an amount equivalent to the annual rate of interest pursuant to Section 6 of the Articles of Association. The redemption price for each redeemed preference share shall, however, never be less than the share’s quotient value.

(iii) From the tenth anniversary of the Initial Issue and thereafter, an amount of SEK 178.75 plus any Available Amount increased by an amount equivalent to the annual rate of interest pursuant to Section 6 of the Articles of Association. The redemption price for each redeemed preference share shall, however, never be less than the share’s quotient value.

With effect from the date when the redemption price as above fell due for payment, all calculation of interest thereon ceases.

There is no provision for preference shares to be converted into ordinary shares.