Notice to convene the Annual General Meeting of Wärtsilä Corporation
Notice is given to the shareholders of Wärtsilä Corporation to the Annual General Meeting to be held on Thursday 5 March 2020 at 3.00 pm at Messukeskus, Messuaukio 1, 00520 Helsinki, Finland (Messukeskus Siipi entrance). The reception of persons who have registered for the meeting and the distribution of voting tickets will commence at 1.30 pm.
A. Matters on the agenda of the general meeting
At the general meeting, the following matters will be considered:
1. Opening of the meeting
2. Calling the meeting to order
3. Election of persons to scrutinise the minutes and to supervise the counting of votes
4. Recording the legality of the meeting
5. Recording the attendance at the meeting and adoption of the list of votes
6. Presentation of the annual accounts, the report of the Board of Directors and the auditor’s report for the year 2019
- Review by the CEO
7. Adoption of the annual accounts
8. Resolution on the use of the profit shown on the balance sheet and the payment of dividend
- The Board of Directors proposes to the general meeting that a dividend of EUR 0.48 per share shall be paid for the financial year 2019. The dividend shall be paid in two instalments.
- The first instalment of EUR 0.24 per share shall be paid to the shareholders who are registered in the list of shareholders maintained by Euroclear Finland Ltd on the dividend record day of 9 March 2020. The payment day proposed by the Board for this instalment is 16 March 2020.
- The second instalment of EUR 0.24 per share shall be paid in September 2020. The second instalment of the dividend shall be paid to shareholders who are registered in the list of shareholders maintained by Euroclear Finland Ltd on the dividend record day, which, together with the payment day, shall be decided by the Board of Directors in its meeting scheduled for 8 September 2020. The dividend record day for the second instalment as per the current rules of the Finnish book-entry system would be 10 September 2020 and the dividend payment day 17 September 2020.
9. Resolution on the discharge of the members of the Board of Directors and the CEO from liability
10. Presentation of the Remuneration Policy for Governing Bodies
11. Establishment of the Shareholders’ Nomination Board and adoption of its Charter
- The Board of Directors proposes that the Annual General Meeting decides to establish a Shareholders’ Nomination Board to prepare matters pertaining to the appointment and remuneration of the board of directors. It is also proposed that the Charter of the Shareholders’ Nomination Board be adopted as per the attachment.
12. Resolution on the remuneration of the members of the Board of Directors
- The Nomination Committee of the Board proposes that the annual remuneration as well as the fixed fees for the committee work remain unchanged.
- The annual remuneration payable to the members of the Board shall be: EUR 140,000 for the Chairman, EUR 105,000 for the Deputy Chairman and EUR 70,000 for the ordinary members. In addition, the Nomination Committee of the Board proposes that each member will be paid EUR 750 per Board meeting attended. The chairman’s meeting fee shall be double this amount.
- The Nomination Committee further proposes that the Chairman of the Audit Committee will receive a fixed fee of EUR 20,000 and each member of the Committee a fixed fee of EUR 10,000 for the term and the Chairman of the Remuneration Committee a fixed fee of EUR 10,000 and each member of the Committee a fixed fee of EUR 5,000 for the term.
- Approximately 40% of the annual Board remuneration is proposed to be paid in Wärtsilä shares, and the rest in cash. The Company will compensate the transaction costs and costs related to the applicable asset transfer tax arising from the share purchases. The tax deduction for the entire annual fee will be made from the cash amount. The meeting attendance fees and fixed fees for the Committee work will be paid in cash. Possible travel expenses will be reimbursed according to the travel policy of the Company.
13. Resolution on the number of members of the Board of Directors
- The Nomination Committee of the Board proposes to the general meeting that the number of the Board members be eight.
14. Election of members of the Board of Directors
Mikael Lilius and Kaj-Gustaf Bergh have informed that they are not available for the re-election of the members of the Board.
- The Nomination Committee of the Board proposes to the general meeting that Maarit Aarni-Sirviö, Karin Falk, Johan Forssell, Tom Johnstone, Risto Murto and Markus Rauramo be re-elected as members of the Board. The Nomination Committee proposes as new members of the Board Karen Bomba and Mats Rahmström.
- The above-mentioned persons have given their consent to the position. Also, the above-mentioned persons have brought to the attention of the Company that if they become selected, they will select Tom Johnstone as Chairman and Markus Rauramo as Deputy Chairman of the Board.
15. Resolution on the remuneration of the auditor
- The Audit Committee of the Board proposes that the auditor be reimbursed according to the auditor’s invoice approved by the Company.
16. Election of auditor
- The Audit Committee of the Board proposes that the audit firm PricewaterhouseCoopers Oy be elected as the auditor of the Company for the year 2020.
17. Authorisation to repurchase the Company’s own shares
The Board of Directors proposes that the Annual General Meeting authorises the Board of Directors to resolve to repurchase the Company’s own shares in one or more instalments on the following conditions:
- The Board of Directors is authorised to resolve to repurchase a maximum of 57,000,000 shares in the Company, which, as at the date of this notice to the Annual General Meeting, represents 9.63% of all the shares in the Company.
- Own shares may be repurchased by using the Company’s unrestricted shareholders’ equity, which means that any repurchases will reduce funds available for distribution of profits. The shares may be repurchased through public trading at the prevailing market price on the date of such repurchase as formed in public trading organised by Nasdaq Helsinki Ltd.
- The shares may be repurchased in order to develop the capital structure of the Company, to be transferred for financing or carrying out acquisitions or other arrangements, to be used as part of the Company’s incentive schemes, or to be otherwise transferred further, to be held with the Company or to be cancelled.
- The Board of Directors shall decide upon all other terms and conditions for the repurchase of the Company’s own shares. Shares may be repurchased also otherwise than in proportion to the shareholders’ holding in the Company by way of a directed repurchase, if there is a weighty financial reason for the Company to do so.
- The authorisation to repurchase the Company’s own shares shall be valid until the close of the next Annual General Meeting, however no longer than for 18 months from the authorisation of the shareholders’ meeting.
18. Authorisation to issue shares
The Board of Directors proposes that the Annual General Meeting authorises the Board of Directors to resolve to issue shares in the Company as follows:
- The Board may issue either new shares or transfer own shares held by the Company (share issue).
- The maximum number of shares to be so issued shall not exceed 57,000,000, which represents 9.63% of all the shares in the Company.
- The shares can be issued for consideration or without consideration. They can also be issued in deviation from the shareholders’ pre-emptive rights by way of a directed issue if there is a weighty financial reason for the Company to do so. A directed issue may be decided upon e.g. to develop the capital structure of the Company, to finance or carry out acquisitions or other arrangements, or to use the shares as part of the Company’s incentive schemes.
- The authorisation includes the right for the Board of Directors to resolve upon all other terms and conditions for the issuance of shares.
- The authorisation for the Board of Directors to issue shares shall be valid for three years from the authorisation of the shareholders’ meeting, and it cancels the authorisation given by the General Meeting on 7 March 2019 to distribute the Company’s own shares.
19. Closing of the meeting
B. Documents of the general meeting
The Remuneration Policy for Governing Bodies of Wärtsilä and the Charter for the Shareholders’ Nomination Board are attached to this notice. They are also available on Wärtsilä Corporation’s website at www.wartsila.com/investors, together with the proposals for the decisions on the matters on the agenda of the general meeting and this notice. The electronic annual report of Wärtsilä Corporation, including the Company’s annual accounts, the report of the Board of Directors and the auditor’s report, is available on the above-mentioned website no later than 13 February 2020. The proposals for decisions and the other above-mentioned documents are also available at the meeting. Copies of these documents and of this notice will be sent to shareholders upon request. The minutes of the meeting will be available on the above-mentioned website as of 20 March 2020 at the latest.
C. Instructions for the participants in the general meeting
1. Shareholders registered in the shareholders’ register
Each shareholder, who is registered on 24 February 2020 in the shareholders’ register of the Company held by Euroclear Finland Ltd, has the right to participate in the general meeting. A shareholder whose shares are registered on his/her personal Finnish book-entry account is registered in the shareholders’ register of the Company.
A shareholder, who is registered in the shareholders’ register of the Company and who wants to participate in the general meeting, shall register for the meeting no later than 2 March 2020 at 16:00 hours by giving a prior notice of participation which shall be received by the Company no later than on the above-mentioned date. Such notice can be given:
a) by e-mail: yk@wartsila.com
b) on the Company’s website www.wartsila.com/agm_register
c) by telephone (09.00 am to 12 noon on weekdays) +358 10 709 5282 / Anita Nenonen, or
d) by regular mail to Wärtsilä Corporation, Share Register, P.O. Box 1834, FI-00080 WÄRTSILÄ, Finland.
In connection with the registration, a shareholder shall notify his/her name, date of birth, telephone number, as well as the name of a possible assistant or proxy representative and the personal identification number of a proxy representative. The personal data given to Wärtsilä Corporation is used only in connection with the general meeting and with the processing of related registrations.
2. Holders of nominee registered shares
A holder of nominee registered shares has the right to participate in the general meeting by virtue of such shares, based on which he/she on the record day of the general meeting, i.e. 24 February 2020, would be entitled to be registered in the shareholders’ register held by Euroclear Finland Ltd. The right to participate in the general meeting requires, in addition, that the shareholder on the basis of such shares has been registered into the temporary shareholders’ register held by Euroclear Finland Ltd by 2 March 2020 at 10:00 am. With regards to nominee registered shares, this constitutes due registration for the general meeting.
A holder of nominee registered shares is advised to request without delay necessary instructions regarding the registration in the temporary shareholders’ register of the Company, the issuing of proxy documents, and registration for the general meeting from his/her custodian bank. The account management organisation of the custodian bank will register a holder of nominee registered shares, who wants to participate in the general meeting, into the temporary shareholders’ register of the Company by the time stated above.
3. Proxy representative and powers of attorney
A shareholder may participate in the general meeting and exercise his/her rights at the meeting by way of proxy representation. A proxy representative shall produce a dated proxy document, or otherwise in a reliable manner demonstrate his/her right to represent the shareholder at the general meeting. When a shareholder participates in the general meeting by means of several proxy representatives representing the shareholder with shares at different securities accounts, the shares by which each proxy representative represents the shareholder shall be identified in connection with the registration for the general meeting.
Possible proxy documents should be delivered in originals to Wärtsilä Corporation, Share Register, P.O. Box 1834, FI-00080 WÄRTSILÄ, Finland, before the last date for registration.
4. Other instructions and information
Pursuant to chapter 5, section 25 of the Companies Act, a shareholder who is present at the general meeting has the right to request information with respect to the matters to be considered at the meeting.
As of the date of this notice, the total number of shares and votes in Wärtsilä Corporation is 591,723,390.
Helsinki, 29 January 2020
WÄRTSILÄ CORPORATION
Board of Directors
Appendix 1: Remuneration Policy for Governing Bodies of Wärtsilä
Appendix 2: Charter for the Shareholders’ Nomination Board
Wärtsilä in brief
Wärtsilä is a global leader in smart technologies and complete lifecycle solutions for the marine and energy markets. By emphasising sustainable innovation, total efficiency and data analytics, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2019, Wärtsilä’s net sales totalled EUR 5.2 billion with approximately 19,000 employees. The company has operations in over 200 locations in more than 80 countries around the world. Wärtsilä is listed on Nasdaq Helsinki.
Wärtsilä Shareholders Nomination Board Charter
