I am very pleased with the announcement of SinterCast’s first dividend. Can you please explain how the company determined the amount of the dividend.


Shareholder, name withheld

Although the year-end liquidity was SEK 40.3 million, much of this capital was derived from the new share issue in September 2009, the shareholder warrants in October 2010, the first 15% of the employee stock option programme in December 2010, and the outstanding bank loan in the amount of SEK 3.0 million. The dividend of SEK 0.5 per share corresponds to a payment of SEK 3.5 million to the shareholders, and represents 140% of the 2010 cashflow (SEK 2.5 million)*. In deciding the amount of the ordinary dividend to be proposed to the AGM 2011, the Board considered the cashflow from operations and investments together with other factors, such as the year-end accounts receivable, the need to replenish stock following the shipment of the System 3000 equipment, and the repayment of the bank loan. The Board’s intention is to continue to provide an ordinary dividend to the shareholders, and for this dividend to grow as the business and cashflow result evolve. The Board is committed to safeguarding the liquidity of the company and, in the event that the Board considers that the cashbox exceeds the requirement of the company, the Board has the option to propose an extraordinary dividend or a share buy-back to adjust the liquidity.

*Includes cashflow from operations of SEK 3.0 million and investing activities of SEK -0.5 million