Shareholder information

Investor relations policy
I.M. Skaugen SE aims to keep shareholders, analysts and investors updated to the Company’s operations in a timely fashion, both by releasing information regularly and holding presentations. The financial calendar showing publication dates for the company’s quarterly interim reporting is available on our website.

I.M. Skaugen has for several years focused on achieving and maintaining a transparent and accountable financial reporting system. Accurate and thorough information is vital for securing reasonable pricing for the company, based on underlying values and earnings. It is our policy to report promptly, within 10 working days of the end of each quarter. Open investor presentations are arranged on a regular basis. The CEO reviews the results and comments on the performance as well as the outlook. The Group’s Chief Financial Officer also participates at these presentations, as do other members of the corporate ­management from time to time.

These presentations are available at the Group’s website. Beyond this, the Group maintains a regular dialogue with and conducts presentations to analysts and investors.

Shareholder Policy
The company’s shareholder policy aims to create shareholder value through our emphasis on ”Cost and Service Leadership”, constantly improving customer service and focusing on operational efficiency, thereby growing the business profitability.

I.M. Skaugen’s goal of creating value for its shareholders means a continuous focus on ensuring that the company’s balance sheet and its financing - inclusive of its equity - is adapted to the company’s objectives, strategy and risk profile.

The Board of Directors has adopted a financial policy that amongst others have targeted an equity ratio (book equity in percent of total assets) of no less than 30 percent.

The company favors a dividend policy based on financial performance, but the increase in share price should, over time, account for the largest part of the return on shareholder investment. When appropriate, and particularly when the share price is considered low, the company aims to buy back its own shares from the market.

In correspondence with the Norwegian code of practice for corporate governance shareholders have the opportunity at each annual general meeting to approve any mandate to the Board of Directors to issue shares or purchase own shares.

Board of Directors of I.M. Skaugen SE
Please refer to our web site www.skaugen.com for information on the members of the Board, including details related to the date of election, term of office, relevant expertise, other appointments and/or employment, as well as details of any business or personal connection to the company.

Mandates granted to the Board of Directors

On 9 March 2009, the company's Ordinary Annual General Meeting granted the Board the authority to acquire treasury shares. The Board of Directors believes that the acquisition of the Company's treasury shares might improve the shareholders' return and it was proposed this authorization to be renewed. This also assures the company greater financial flexibility. The acquisition of the Company's own shares can for example be relevant in a situation where the Company's equity- and liquidity situation is good, while at the same time there is a limited supply of attractive investment opportunities. During 2009, IMSK purchased back 80 600 of its own shares.

The authorization is registered in the Register of Business Enterprises.

The IMSK share performance
In 2009 the IMSK share yielded 12.2 percent, climbing from NOK 36 to NOK 40.4 per share at the end of the year. Compared to its peers, the stock has performed at average in 2009 as a whole. Vs. the OSEBX index and the transport index the stock price lagged the general market recovery and the IMSK share made its bottom at a later stage as shown in the chart below. Measured from the lowest point in the beginning of April to year end the yield was 102 percent. The average share price during the year was NOK 31 and it reached a low of NOK 20 and a high of NOK 43. The Board of directors suggests not paying any dividends for 2009.

IMSK terminated the market maker agreement with Pareto AS 26^th October in accordance with the requirements from the Oslo Stock Exchange.

The company entered a new market maker agreement terminated as per 26th of October 2009, for the company's shares with Argo Securities AS (Argo). The new agreement should provide our many smaller shareholders with a better liquidity scheme by offering larger bid / ask volumes and tighter spread compared to our previous arrangements.

In addition to the "standard" market maker agreement, Argo will seek to improve the liquidity in larger blocks via a shared risk scheme. If Argo wants to buy a larger block of shares we at IMS may assist for it to do so by entering into "put options" for the company's shares that Argo may buy and resell. There is a shared risk on the result of this between Argo and IMS and if the shares remain unsold the shares will be bought by IMS and treated as treasury shares. Any transactions made by IMS under this arrangement will be announced, and will be in accordance with the authorization to acquire the company's own shares. The setup is clarified with the Financial Supervisory Authority of Norway. Since this agreement the trading volume has experienced an increase.

We currently enjoy 2 200 shareholders where 99 percent of the shareholders own 25 percent of the shares, and the new arrangement is intended to offer these shareholders a more cost efficient and better liquidity arrangement.

Largest shareholders in I.M Skaugen SE