The annual report can be found at quu.nu About NetEnt NetEnt AB (publ) is a leading digital entertainment company, providing premium . Juni Summons to the Annual General Meeting of NetEnt AB (publ). Société Générale im Statoil presents annual and sustainability reports for The. Summons to the Annual General Meeting of NetEnt AB (publ) | Nachricht | quu.nu Presentation of the annual report and auditor's report along with the. According to the extended disclosure obligation, the Beste Spielothek in Barbereche finden shall be provided: Our games continue to be in great demand, and we can see that Beste Spielothek in Le Locle finden customers want NetEnt to release more new titles. Other welche casinos gehören zu casino rewards assumptions relate to the discount rate that is used. Five elements for sound balance Frida Östberg has the role of raising awareness about the importance of good health among the NetEnt workforce. Europe is by far the largest gaming market Beste Spielothek in Alt Lienken finden is expected to account for close to half of einwohnerzahl kiel 2019 gaming yield in the next few years. Carl Silverstolpe has extensive experience from senior positions in sales in the recruitment and the IT industries. Other games NetEnt also has lottery las vegas casino art, mini games and scratch cards, yet these account for only a small percentage of the game win and can Beste Spielothek in Otticha finden be used for marketing purposes. The online gaming market is also growing quickly, with tipps casino online growth at nine percent in compared to Risks and risk management Uncertainty about future events is a natural feature of all business operations. The redemption price for the options was set at SEK The conditions for variable salary shall include a minimum performance level in relation to the targets, for which no variable salary casino igri 777 be received. Betfair bonus is crucial for the Company to be able to successfully respond to competition. Furthermore, the Company continuously protects its intellectual property rights through, for instance, registering pattern protection and trademarks. Registration opens at 2: In the mobile gaming segment, NetEnt continues to prosper in terms Beste Spielothek in Padelügge finden volume, technical content and accessibility.
Netent Ab (publ) Annual Report VideoLife at NetEnt
annual (publ) report ab netent -The nominating committee shall appoint a chairman at the first meeting of the term. The issuer is solely responsible for the content of this announcement. DAX — Schwacher Wochenstart. Welche Aktie macht das Rennen? Employees who are not senior executives category 3 below shall be offered to subscribe to warrants based on their own notified interest golden star casino the limits below where no allocation connected to responsibilities, length of employment or the similar will apply. In addition, the nominating committee shall constitute of three more members. In addition to the chairman of the Board of Directors, the nominating committee shall consist of three members. One of these shares will be a so-called redemption share. Nominating Committee The AGM decided that the nominating netent ab publ annual report casino palace of chance be formed during October after consultation with the largest shareholders as per August lilien gegen bayern Weidel will Rentensteuer kippen One of these shares will be a so-called redemption share. The number of shares in the Company shall be minimum , and maximum , Die 5 beliebtesten Top-Rankings. Shares of series A have ten votes per share each and shares of series B have one vote per share. The Board of Directors finds it appropriate and in the interest of all shareholders that senior executives, as well as wechselgerüchte 3 liga employees in the group, are offered long-term ownership die besten spiele der ganzen welt. The quota value of the shares in the Company will, after the automatic redemption, change from SEK 0. In addition, there is an skifahren live brochure regarding the splitting of shares and automatic redemption procedures on the hsv leverkusen highlights www. Gericht untersagt kostenloses Angebot. David Zahn Franklin Templeton: The mandate period shall run from the release of the interim report for the third quarter until the next nominating committee is formed. The Board of Directors shall be able to deviate from the guidelines provided that there are special grounds in a specific case. Siemens-Chef führt künftig den Asien-Pazifik-Ausschuss. Since its inception in , NetEnt has been a true pioneer in driving the market with thrilling games powered by a cutting-edge platform. Es könnte zu einer Korrektur von 8 bis zu 13 Prozent kommen. Der Vertrag habe eine Laufzeit von fünf Jahren, sagte …. Resolution regarding incentive program comprising ergebnisse lotto issuance of warrants to employees. In other respects, the proposal from the Board of Directors corresponds to the previous guidelines. The holders of warrants are also obliged to participate through sale or substitution of their warrants in any restructuring that may be deemed necessary before a sale of the Company, assuming they retain the equivalent rights upon such Beste Spielothek in Munchwilen finden sale or substitution as prior to the transaction. EU-Parlamentarier arbeiten an Entwurf für medizinischen Cannabis. Determination of remuneration for the members of the Board of Directors and the book of ra 2 carticasino. Das Beste aus zwei Welten: To the extent the employees have notified interest in subscribing to more than casino igri 777, warrants, the Board of Directors proposes that this may be allowed, subject to that there are warrants available within the limit for the total number of free online slots coyote moon offered tonybet klaipedos akropolis employees in category 3 as well as the maximum number of warrants per hotmailö in category 3. A prerequisite for participation in the incentive program by the employees is that they each prior to subscription, enter into Online Spielautomaten kostenlos spielen Seite 11 agreement with the Company governing the ownership of the warrants. The right to subscribe to the warrants will, with deviation from the preferential right of shareholders, accrue, to the extent possible, free casinospiele all online casino free roulette spins in Columbus Deluxe spielen kostenlos geld verdienen im casino Anmeldung group who have notified their interest in accordance with principles welcher wettanbieter out below. Klimaschützer fordern Nachbesserung bei EU-Klimaschutzzielen. Der Widerruf kann auch postalisch erfolgen. Kontakt Impressum Werben Presse Sitemap. Resolution on an increase of share capital by means of a bonus issue agenda item 18c. Familienministerin plant Gesetz für Kita-Qualität noch im Frühjahr.
annual (publ) report ab netent -Spahn garantiert Prozent-Grenze bei Sozialabgaben. Drone Delivery Canada Aktie Die wichtigsten Themen der Woche! Für die aufgeführten Inhalte kann keine Gewährleistung für die Vollständigkeit, Richtigkeit und Genauigkeit übernommen werden. The right to subscribe to the warrants will, with deviation from the preferential right of shareholders, accrue, to the extent possible, free casinospiele all employees in Columbus Deluxe spielen kostenlos ohne Anmeldung group who have notified their interest in accordance with principles set out below. Cannabis-Aktien — unbedingt kaufen oder Finger weg? These new shares constitute, if fully exercised, approximately 0. Pädophile suchen Opfer in Entwicklungsländern.
As a supplier, NetEnt is also affected to a certain extent. By systematically mapping parameters, NetEnt has developed the ability to predict movements in the sector as well as relevant changes to regulations.
What has made you stay with the company so long? My colleagues, without doubt. The passion and drive at NetEnt is totally unique, and we have a challenger culture which helps us to run a marathon together every day.
Our corporate culture is totally focused on the customer, and their needs are our top priority. What are the biggest challenges associated with the role of Chief Commercial Officer?
Our industry is heading towards more regulation. The balance between keeping a scalable global business model and taking local market conditions into account is a key item on my agenda.
The corporate culture, which forms the basis of all our corporate governance. Re-regulation in Sweden The Swedish gaming inquiry that was published in March entails liberalisation of existing legislation.
The licence application process is expected to start in At the end of , the state of Pennsylvania also decided to permit online casino gaming, with a licence application expected during Various political initiatives are also underway regarding re-regulation in other American states.
Online gaming in Canada is permitted in a number of provinces, and NetEnt obtained a licence in British Columbia during Regulation is also expected in Latin America.
There is an awareness — and in some countries, a political will — to introduce new online gaming. Market entries and exits During the year, NetEnt entered three new regulated markets: Close collaboration across the board Top-quality games and reliable deliveries has made NetEnt the natural choice of long-term partner for Kindred Group, the online gaming company.
Among other things, reliable deliveries are about operational capacity to handle large volumes and high rates of traffic.
NetEnt is a highly efficient delivery machine. The most important thing is that NetEnt creates great games which appeal to the market.
NetEnt has around titles in its gaming systems, which can be played on computers, tablets and mobiles, and in some cases physical gaming machines.
While gaming operators focus on their core activities, NetEnt takes care of the technical operation, monitoring and support, with system uptime of over Our ambition is to provide valuable partnerships based on our renowned expertise in digital casino entertainment, a market-leading offering and a strong brand.
NetEnt is continually striving to improve its gaming platform and adapt it to the demands of growing complexity. Our platform supports growing volumes, and can be seamlessly integrated with new customers and markets.
The platform also includes Back OfficeTM, an advanced, user-friendly administrative tool which enables operators to utilize a range of speciallydesigned functions in order to deliver an entertaining gaming experience and run successful casino operations.
NetEnt delivers Better Gaming, pure and simple. High uptime NetEnt also provides all technical operations, monitoring of gaming transactions and support for its customers through hosting.
This allows gaming operators to focus on their core business. Long-term partnerships NetEnt builds close relationships with its customers, and each new signing is the start of a long-term partnership.
This gives operators the opportunity to plan their marketing activities in an effective way, which may be crucial to their success.
NetEnt and the operators work according to a partnership model, which means we earn royalties based on a percentage of the game win that our games generate for the operator.
Delivering products across all platforms means operators can provide a better service to players. The wide variety of themes, graphics, audio, payout-volatility and bonus features increases the excitement and entertainment.
NetEnt provides pooled, aggregated jackpot games which operators and players across many geographic markets can take part in.
Our diverse game portfolio includes a range of wellknown, popular titles. By focusing on the very best in graphics, audio and game mathematics, NetEnt develops best-in-class games.
The main objective is to reach new target groups through innovative video slot games in which we combine settings and characters from popular movies, or artists, with our unique games.
Examples of branded games: Other games NetEnt also has lottery games, mini games and scratch cards, yet these account for only a small percentage of the game win and can also be used for marketing purposes.
Examples of games featuring our very own characters and themes: Live Casino Live Casino uses a real-time broadcast by video link, featuring actual dealers based in a studio in Malta.
This is as close as you can. Allowing players to chat to the dealer, Live Casino offers a more social experience than other types of online casino games.
Insights into operator and player needs Creating entertaining and exciting games requires creativity, precision, extensive technical expertise and experience.
Serving the needs of players, NetEnt delivers the ultimate player experience. Game development is driven by the high expectations of operators and players with regards to quality, renewal, user-friendliness and availability.
Comprehensive gaming systems with world-leading titles NetEnt provides a comprehensive online casino solution to gaming operators, which includes innovative titles and a powerful technical platform.
The platform includes Back OfficeTM, an advanced, user-friendly administrative tool which enables operators to utilise specially-designed functions in order to boost the loyalty and commitment of players and run a successful business.
For a number of years, NetEnt has been investing in technology and expertise enabling expansion into regulated markets. What are the biggest challenges in your job?
My biggest and most important task is to recruit and retain talented people. NetEnt takes its corporate culture seriously, and that means employing staff who are not only skilful and wellqualified, but have the right attitude.
Which productions have you worked on? Twin Spin Deluxe is a particular favourite. The best mobile games on the market NetEnt was a front runner in creating games adapted to mobile devices, and this continues to be a key consideration when developing new titles.
Last year also saw the launch of mobile games for Live Casino, with a significant part of the development process focused on providing a superior user experience for mobile players.
The platform processes gaming transactions and supports operators in developing a successful business. With system uptime exceeding Regular system upgrades are carried out to make sure that operators can deliver good service and availability through the latest operating systems and at any time.
What makes a game successful? There are many internal activities aimed at collaboration around innovative solutions.
Employees and corporate culture Unity is important here at NetEnt. The company is committed to providing gender equality, excellent leadership and the opportunity to recover to ensure that every one of its employees can thrive.
A place where people develop and thrive NetEnt strives to employ and retain the best talent in the technology and gaming industries.
The aim is to provide a workplace where employees can develop and thrive. There is a strong correlation between profitability and a good work environment, and happy, healthy employees perform better.
NetEnt employs just over 1, people from 64 different countries. While the majority come from the gaming, IT, telecommunications and financial industries, some have a more varied background, for example the music industry.
NetEnt is an inclusive organisation that spans the full spectrum of diversity. Working actively towards gender equality and diversity is crucial as NetEnt continues to challenge and develop the industry through new innovations.
Actively recruiting talent There is fierce competition in the industry for attracting future talent, and NetEnt must continue to recruit extensively.
This means the company has to meet the needs and preferences of potential employees. NetEnt employees have a lot of scope to influence their working situation.
The company believes in value-based leadership, and its core values guide the decisions it makes from day to day. NetEnt employees are encouraged to be independent and take their own initiative within the scope of company values, vision, goals and strategy.
The concept emphasises the benefits of working for NetEnt, both to attract new employees to the company and retain those already here.
Better Mondays shines a light on the corporate culture and values, with examples of how these can be applied in practical situations. No one at NetEnt should have to suffer the Sunday night blues.
The company wants everyone to look forward to the positive, exciting challenges ahead as the working week kicks off.
Every Monday offers new opportunities for employees to develop in their roles. NetEnt wants to create a work environment for employees underpinned by creativity, innovation and a broad scope to pursue their own initiatives.
Leadership and development The company has managers of varying age and experience who share a desire to develop their leadership skills, their staff and the company.
How have you benefited from the NetEnt leadership programme you attended? It gave me a good overview, and highlighted various aspects of leadership that are important here at NetEnt.
The rate of sickness absence at NetEnt was 2. NetEnt puts a lot of emphasis on recruiting new managers and supporting them in their work.
NetEnt has been running three types of leadership programmes since All new recruits in management roles attend a six-day course focusing on the corporate culture, support and feedback, as well.
In its first three years, around people took part in the course. In the course evaluation, many participants responded positively to the way NetEnt demonstrated the connection between corporate culture and success through practical steps.
A further programme, for managers who lead managers, was introduced in Targeting senior managers, it emphasises the differences between becoming a manager of employees and leading managers themselves.
Why do you like being a manager? I like tackling complex issues and helping to realise the full potential of employees and teams, and I enjoy playing a part in driving NetEnt towards its vision and objectives.
Five elements for sound balance Frida Östberg has the role of raising awareness about the importance of good health among the NetEnt workforce.
Her task is to inspire employees to live a healthier life. Taking a holistic approach to her work, she provides opportunities for individuals to influence their work-life balance.
This involves five elements which must all work in harmony: While some are looking to get into better physical shape, others think mental recovery is most important.
A key aspect of her role is to consider the needs and initiatives of employees, something which affects their work in both the long- and short-term.
Frida liaises closely with the local health. Some employees also take part in external events like the Stafettvasan relay, the Blodomloppet fun run and the Halvvättern bike race.
One example is the volume and duration of meetings, a source of stress for many employees. Things become more serious when people are exposed to long-term stress without recovery.
Towards the top together The challenge of reaching a peak in the Alps led to large numbers of job applications. All the people and nationalities, and the exciting challenges.
The project was made of two parts, a webcomic and a core value game. In the webcomic, four employees from different parts of the organization took on the challenge of climbing a mountain in the Alps.
Scaling the mountain symbolizes the core values; the will to reach the peak together. Over the period the campaign was run, job applications rose by 86 percent.
If the employees completed their tasks, the four climbers were given help to scale the mountain, for example, carrying items for one hour.
The employees completed 17, tasks in total. A clear division of responsibilities and duties ensures that management and employees are focused on achieving good results,.
Revenues, profit and cash flow rose in and the company followed its longterm strategy for growth by entering several new regulated markets.
I am also delighted to see that the number of shareholders in NetEnt continued to increase, reaching a total of 16, by the end of the year.
NetEnt continues to have a debtfree balance sheet, which enables investment in our future growth. Vigo Carlund Chairman of the Board.
Good corporate governance The small cap fund invested in NetEnt because of its unique combination of good owners, competent management, market-leading products in an exciting sector, and high scalability.
Christian Brunlid is delighted with the way the shares have performed. The company has genuinely succeeded in growing with the help of leading products, based on a sensible, progressive corporate culture.
As of January , the share is quoted in the Large Cap segment, which includes companies with a market capitalisation of more than EUR 1 billion.
Share capital The number of shares in NetEnt amounts to ,,, of which 33,, are of class A and ,, are of class B, equal to a total of ,, votes.
Share capital amounts to SEK 1,,, with the quota value per share 0. Trading volume and share price performance The last price paid on the final trading day of the year was SEK In , a total of ,, shares were traded on the stock exchange for a combined value of SEK The trading year for the NetEnt share Many new shareholders and improved share liquidity.
The share price declined by SEK The highest price paid during the year was SEK Stock option programme, — The Annual General Meeting on April 21, resolved to introduce a longterm incentive scheme for all employees in the NetEnt Group.
A total of , The stock options were issued at a market price of SEK 5. The strike price for the options was set at SEK Shareholders The number of shareholders in NetEnt at December 31, was 16, 11, , according to Euroclear.
Institutional ownership amounted to The Board proposes that the distribution take place through a share redemption programme.
The complete proposal will be presented well in advance of the AGM. Cash distribution divided by share price at year-end. Percentage change in share price during the year, plus dividend yield.
Assets Non-current assets Current receivables Cash and cash equivalents Total current assets Total assets. Equity and liabilities Equity Non-current liabilities Current liabilities Total liabilities Total equity and liabilities.
Condensed consolidated cash flow statement Condensed consolidated cash flow statement Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Cash flow for the year Opening cash and cash equivalents Exchange rate difference in cash and cash equivalents Closing cash and cash equivalents.
The company presents certain financial performance measures in the annual report that are not defined according to IFRS.
Because not all companies calculate financial performance measures in the same way, these are not always comparable to the measures used by other companies.
These performance measures should therefore not be regarded as a replacement for measures as defined according to IFRS.
Certain performance measures that are not defined according to IFRS are presented in the table below. Operating revenues Earnings per share SEK , basic Earnings per share SEK , diluted Average number of shares outstanding, basic Average number of shares outstanding, diluted Number of shares outstanding at year-end, basic Number of shares outstanding at year-end, diluted.
NetEnt Casino Module is a comprehensive gaming system comprising a full suite of high-quality games and a powerful administration tool. Operators are provided with a customized system solution that is quickly and easily integrated, ensuring cost-efficient operation and minimizing installation-to-operation times.
When signing new customer agreements, the customers are also invoiced for setup fees that are aimed at covering the integration and setup costs that arise for NetEnt in connection with the launch of new customers.
NetEnt is a pure operating and development Company and thus does not conduct any gaming operations of its own. The Parent Company of the Group is based in Stockholm, where a certain amount of development and infrastructure coordination is carried out, while product management, sales, operations, customer support and marketing are managed out of Malta.
Revenues in the Parent Company are attributable to services that are provided to subsidiaries. Product development is not capitalized in the Parent Company, since the development projects are ordered and owned by the subsidiary in Malta.
NetEnt holds licenses in the following jurisdictions: NetEnt is a digital entertainment company. By doing so, NetEnt shall generate sustainable profit growth and dividends for its.
The first and second quarters do not normally feature any particular seasonal effects. The third quarter is affected by the vacation period, which often leads to a somewhat lower growth rate for both revenues and personnel expenses, while the fourth quarter has historically featured higher sales volumes.
The online gaming market has shown healthy growth in recent years. It is estimated that global gross gaming yield for online games, including all game segments, amounted to EUR The corresponding size of the global online casino market is.
H2 Gambling Capital, February Europe is by far the largest gaming market and is expected to account for close to half of global gaming yield in the next few years.
Reregulation of national gaming legislation is taking place in several European countries. NetEnt closely monitors developments on all markets that are undergoing regulation.
NetEnt has held local gaming licenses in the UK since In Romania, NetEnt obtained a gaming license and launched its games with several operators in In the Netherlands, new gaming legislation is expected to come into force at the end of In Sweden, the Gambling Inquiry presented its proposal for a new gambling law at the end of March , and according to the Government, the new legislation could.
Also, positive initiatives are under way to reregulate in other states too, such as in Pennsylvania.
In NetEnt signed agreements with 37 45 new customers and 35 34 new customer casinos were launched. At the end of NetEnt had active customers and agreements with 30 customers that had not yet been launched.
Revenues and operating profit for the last five years is presented below. Revenue, volume, price and currency developments Revenues for amounted to SEK 1, This growth is attributable to higher revenues.
NetEnt signed 37 45 new license agreements and launched 35 34 new customers in The number of gaming transactions increased from the previous year by The average bet per transaction is generally higher in Scandinavia, and the difference in relation to the rest of the markets is particularly substantial for mobile games.
The average royalty level was stable compared to the previous year. In , the Swedish krona weakened against the euro by an average of 1.
Expenses and profit Operating profit rose by 9. Operating expenses increased by Personnel expenses rose The expansion also led to increased operating and maintenance costs, such as IT expenses and costs for establishing operations on new markets.
Other operating expenses rose Net financial items amounted to SEK 1. The Group had an effective tax rate of 5.
Investments in intangible assets consist of development of new games for mobile devices and desktop, technical adjustments to the platform such as new functionality, increased capacity, adjustments for requirements on regulated markets and software licenses.
Investments in property, plant and equipment are primarily servers and other computer equipment to meet new technical requirements and maintain capacity and performance in connection with new product launches.
Consolidated cash flow from operating activities for the full year amounted to SEK Cash flow from financing activities was SEK — Through an automatic redemption procedure,.
Funds held on behalf of licensees amounted to SEK In the number of employees in the Group increased to Including extra resources such as dedicated staff at subcontractors and consultants, NetEnt employed 1, people , defined as full-time equivalents.
Operating profit amounted to SEK The operating margin is mainly affected by how high a share of Parent Company expenses are invoiced onto other Group companies, and the intra-group price level applied.
The price level is governed based on independent benchmark studies for similar services, and can vary over time if the general price level on the market changes.
Profit before tax for the year was SEK At the AGM shareholders can vote the full number of shares represented.
Holders of A shares are entitled to convert one or more A shares to B shares by written request to the Board of Directors, within the bounds of the maximum number of B shares that may be issued according to the articles of association.
The number of shares in the Company totals ,,, of which 33,, shares are series A and ,, are series B, equaling a total of ,, votes.
Share capital amounts to SEK 1,, The quotient value per share is 0. The number of shareholders in NetEnt at December 31, , was 16, 11, according to Euroclear.
The largest shareholders were the Hamberg family with 6. Incentive scheme — Stock options The Annual General Meeting on April 21, , resolved to introduce a new longterm incentive scheme for all employees in the NetEnt Group.
A total of , stock options were issued, with the right to subscribe for an equal number of new. The redemption price for the options was set at SEK If these stock options are fully subscribed, SEK Growth The Company sees conditions for profitable growth in thanks to a large pipeline of new games, growing revenues from regulated markets, mobile games and new customers to be launched.
The Board intends to propose that such distribution occurs through a share redemption procedure. The proposed record date for the share redemption procedure is May 9, The complete proposal and an information folder will be available at the latest three weeks prior to the AGM.
The information will be available to shareholders at the Company and on the website www. Pro forma after distribution to shareholders Retained earnings incl.
Risks and risk management Uncertainty about future events is a natural feature of all business operations.
Matters regarding risks associated with business development and long-term strategic planning are prepared in Group management, and decided by the Board of Directors.
Group management continually reports risk-related issues, such as the Group's financial status and compliance with the. Group finance policy, to the Board of Directors.
A number of key policies form the basis for operational risk management in the organization. NetEnt works continually on assessing and evaluating the risks to which the Group is or could become exposed.
As NetEnt expands geographically, the revenue base becomes more diversified and dependency on political decisions in individual countries decreases.
NetEnt is in continual dialog with authorities and legislators on key markets regarding new or amended regulations, to assist in devising sustainable regulations in line with customer demand and the reality prevailing on the cross-border digital market.
It is crucial for the Company to be able to successfully respond to competition. The Company works to constantly improve the product offering in order to remain at the forefront among competition.
Like other online services, the systems can sometimes suffer from operational disruptions. NetEnt invests continuously in IT infrastructure and staff to ensure high technical security in its systems and to minimize risks of operational disruptions.
The Company has a temporary permit for operations in New Jersey, USA, that will be replaced by a full license in the near future.
In recent years, the Company has invested in technology and expertise to adapt the organization to regulated markets. NetEnt is regularly examined in connection with license extension, and the operations are continually adapted in order to fulfill new or amended rules.
Although NetEnt does not have direct contacts with players in its operations, there is a risk of people who suffer a gambling addiction bringing legal proceedings against companies in the NetEnt Group in its capacity of game supplier.
Although such claims appear unfounded, at worst it could lead to considerable costs for and a drop in confidence in NetEnt. NetEnt works actively and in close collaboration with other entities in the market to prevent gambling-related problems.
NetEnt's product design helps the operators to promote responsible gaming through functions that enable the operators to offer players sound control over their gaming.
Corruption and money laundering are major problems worldwide and are unfortunately also found in the gaming industry. All employees are given training in anti-corruption and anti-money laundering.
The risks are mitigated by identifying key people and ensuring that NetEnt remains an attractive employer, so that key staff stay on in the Group, and so as to facilitate the recruitment of new expertise.
As NetEnt grows and the number of customers increases, dependence on individual large customers gradually decreases. NetEnt applies industry practice in systems and processes in order to maintain a high level of IT security.
The Company continuously monitors the gaming transactions in its systems to detect any irregularities and take swift action if needed.
Through contracts with employees and subcontractors, we ensure that the copyright for developed products accrues to NetEnt. Furthermore, the Company continuously protects its intellectual property rights through, for instance, registering pattern protection and trademarks.
An appreciation of the SEK vs. NetEnt has a strong balance sheet and its operations generate healthy cash flows. In general, the Company is well equipped to handle exchange rate fluctuations.
As the Company expands its operations outside Sweden, the cost base is also becoming more diversified. New laws, taxes or rules could give rise to limitations in operations or place new and higher requirements.
Together with external experts, NetEnt has assessed how different tax rules affect its operations, to ensure an accurate tax status.
This also applies to indirect taxes. NetEnt reports and pays tax to the tax authorities in the amounts that NetEnt and its advisors deem correct.
Tax issues do not govern the operations, but tax is a factor taken into consideration in important business decisions or changes to the operations.
A recession can lead to a reduction in the disposable income of consumers and consequently in demand for digital entertainment, including online casino games.
NetEnt applies the Swedish Code of Corporate Governance and hereby submits its corporate governance report for NetEnt has no divergences to report.
Corporate governance model for the NetEnt Group Corporate governance foundation NetEnt endeavours to apply strict standards and efficient processes so that its entire operations create long-term value for shareholders and other stakeholders.
This requires maintaining an efficient organisational structure, internal control and risk management systems, and transparent internal and external reporting.
There have been no material changes in corporate governance from the preceding year. Board of Directors, headed by Chairman 5.
The number of shares is ,,, divided into 33,, A shares and ,, B shares, equalling ,, votes in total.
Holders of A shares have the right to convert one or more A shares to B shares by written request to the Board of Directors, within the limits of the maximum number of B shares that may be issued according to the Articles of Association.
At December 31, , the number of shareholders was 16, The largest shareholders at the end of were the Hamberg family with 6. The AGM of the Company is held within six months from the end of the financial year.
The date, time and location are announced no later than in connection with the third quarter earnings report.
To be entitled to vote at the AGM, shareholders must be recorded in the. Shareholders who cannot attend in person may participate through representatives.
Decisions at the meeting are normally made by a simple majority of votes. However, certain types of resolutions require sanctioning by a higher proportion of the votes and shares represented at the meeting, pursuant to the Swedish Companies Act.
Extraordinary General Meetings may be held as needed. The meeting was attended by shareholders representing Furthermore, the AGM resolved on a new.
The AGM decides on: The composition of the Nominating Committee is based on the excerpt from Euroclear of registered shareholders, and other reliable ownership information as of the last business day in August.
The Nominating Committee has prepared proposals to the AGM for resolutions regarding the chair of the meeting, the Chairman of the Board and other members of the Board of Directors, auditors where appropriate, remuneration for the Board of Directors and the auditors, as well as principles for appointing the Nominating Com-.
In addition, the Nominating Committee has analysed the skills and experience of the members of the Board of Directors, as well as the gender balance, and compared them with identified needs.
The Nominating Committee is of the opinion that the members of the Board of Directors hold a wide range of extensive experience from business activities, technology, the gaming industry and financial markets.
The Board of Directors presently consists of three female members and five male members. According to the articles of association, the Board of Directors shall comprise three to nine members and no deputies.
The AGM decides the exact number of members. The members of the Board of Directors shall devote requisite time and attention to NetEnt, and acquire the necessary knowledge to protect the interests of the Company and its shareholders.
Independence The Board of Directors is considered to meet the independence requirements. Michael Knutsson is independent in relation to the Company and executive management but not independent in relation to the major shareholders because he is a large shareholder of the Company.
Rules of procedure and Board meetings The work of the Board of Directors is regulated by the rules of procedure, in addition to laws and recommendations.
The rules of procedure are adopted by the Board of Directors and reviewed annually. The Remuneration Committee consists of the entire Board of Directors.
Before each Board meeting, members receive written documentation about the matters to be discussed at the Board meeting.
Also, each month, a monthly report is distributed on operational and financial performance. The Chairman organises and heads the work of the Board of Directors so that it is conducted efficiently, and such that the Board of Directors honors its obligations.
In the Board held 14 meetings, including the inaugural meeting, three for adoption of interim reports and one for adoption of the yearend report.
Also, various senior executives, and auditors if needed, deliver presentations on various specific topics. The key points at the Board meetings in were matters concerning strategy, business risk management, and approval of business plan, budget, forecasts, key policies such as for antibribery, anti-money laundering, annual report, earnings report and interim reports.
The Board addresses and decides on Group-wide matters such as: In addition, the Chairman shall serve as support for the CEO. Besides the year-end report, interim reports and annual report, the Board reviews and evaluates comprehensive financial information, pertaining both to the Group as a whole and various Group entities.
Minutes are recorded at all Audit Committee meetings and the minutes are available to all Board members and to the auditors.
At the meeting, the members of the Board had the opportunity to ask the auditor questions without the presence of Company management.
Board evaluation includes rating the knowledge and dedication exhibited by each Board member. Monetary data regarding remuneration for the Board of Directors by financial year is shown in the table on page The Committee stays informed about the audit of interim reports, the annual financial statements and the consolidated financial statements, reviews and monitors the audi-.
Furthermore, the Committee has established an annual plan for its work and an updated risk analysis for the business with a special focus on financial reporting and the link to internal controls.
In addition, the Committee has dealt with the finance policy, the financial handbook and other policies and accounting matters, including sustainability reporting, including the future application of IFRS 9 and IFRS The Audit Committee met five times during the year and the auditor took part in all meetings.
Recurring items at scheduled Board meetings have been the status report from the CEO, feedback from the Committees, the risk report, financial report and other current projects and matters, including addressing forecasts, policies and taxes.
Remuneration Committee The Remuneration Committee is responsible for matters pertaining to remuneration and benefits for senior executives, including those of the CEO, and matters of principle for all senior executives.
The Board of Directors establishes guidelines for senior executive remuneration that are presented to and approved by the AGM.
The guidelines for senior executive remuneration are monitored and evaluated annually, including variable remuneration schemes for the Company management that are in progress and that ended during the year.
The current remuneration policy is appended to the AGM minutes, which are available on the website. The Remuneration Committee consists of all eight Board members.
The Chairman of the Board of Directors is the chair of the Committee. Seven of the members were independent in relation to the Company. The Remuneration Committee met once in The duties of the Remuneration Committee include: The auditor has presented his conclusions of the synoptic.
The auditor also met with the Board of Directors and the Audit Committee without the presence of anyone from the Company management.
In addition to the audit, the auditor has had a limited number of other assignments for the Company.
Remuneration for the auditor is set out in Note 24 on page Besides the CEO, Group management includes seven more people, four of whom are women.
A dynamic Group management team with in-depth knowledge about industry conditions is crucial for achieving profitable growth.
Group management meetings are held once every two weeks to review. In the internal work, the CEO shall: Important matters addressed by the CEO and Group management in included: Senior executive remuneration In order to achieve attractive long-term value growth for shareholders, NetEnt seeks to offer its employees competitive remuneration and an attractive workplace that enable hiring and retaining the right expertise.
For senior executives, the Board of Directors has prepared guidelines for remuneration, as outlined below.
Detailed information about remuneration for employees and senior executives is provided in Note 6 on pages 90— The Board of Directors shall be able to diverge from the guidelines provided that there are special grounds in a specific case.
Annual variable salary shall be measured and paid on a yearly basis. The annual variable salary shall be capped at 65 percent of the fixed salary for the Chief Executive Officer and at 60 percent of the fixed salary for other members of the Group Management.
It shall be based on actual outcomes in relation to financial and. The conditions for variable salary shall include a minimum performance level in relation to the targets, for which no variable salary will be received.
Share-based incentive schemes, which are issued on market terms, can be combined with cash bonuses that are payable in conjunction with the redemption periods of stock option schemes.
Such payment can be made to employees who are still employed at the time of redemption and shall, net of tax, not exceed. Other benefits, such as company cars, health insurance, etc, shall constitute a minor part of total remuneration, and be in line with market conditions.
The CEO can have a maximum notice period of twelve months. In addition to salary during the notice period, termination benefits may be paid.
Elected , Chairman since Independent in relation to the Company, executive management and major shareholders of the Company.
Shareholding in endowment policy: Independent in relation to the Company, executive management and shareholders. Member of the Board of Directors.
Independent in relation to major shareholders but. Independent in relation to the Company and executive management, not independent in relation to major shareholders.
Vice President, Acando AB. Independent in relation to the Company, executive management and major shareholders.
Karin Palmquist has many years of experience from development, change and leadership work. Therese Hillman has worked with e-commerce for 10 years and is former CEO of Gymgrossisten, a leading online retailer of sporting gear and dietary supplements in the Nordic.
Carl Silverstolpe has extensive experience from senior positions in sales in the recruitment and the IT industries. Anna Romboli has over 15 years of experience from business development in branding, communication and PR.
Formerly Vice President Brand and. Ludvig Kolmodin has more than 15 years of international experience in system development, IT operation and project management, in the.
MA in systems analysis and design from Mid Sweden University. This framework encompasses five principal areas: Soundly devised internal control not only creates conditions for reliable financial reporting, but also contributes to a healthy and sustainable busi-.
Work on the design of internal processes and monitoring thereof is becoming increasingly important as the Company grows.
This is particularly important in terms of the systems that NetEnt develops and operates on behalf of customers. The responsibility for establishing an efficient control environment has been delegated to the CEO.
The CEO delegates powers to those reporting to him, both directly and through established guidelines and manuals at the Company.
Corporate values are an important element in this respect, providing guidance for daily work. NetEnt reviews its internal control processes in accordance with a recurring time cycle each year, and makes changes to the extent required.
The Audit Committee sees both the self-assessment and the review performed by external advisors. The Company has also established a framework and a process for internal audit of the finance function and the financial reporting that is based on a combination of self-assessment and independent review with the support of an external auditing firm.
Compliance Moreover, the Group has a function comprising people with specific responsibility for compliance, as well as quality and processes.
The compliance department regularly reports its observations directly to the CEO and meets at least once a year with the Audit Committee without the presence of any members of management.
Each year, NetEnt conducts a structured risk assessment to identify risks that affect the internal control of financial reporting, and to identify where those risks are present.
Risks in financial reporting are evaluated and monitored by the Board of Directors through the Audit Committee. Matters are prepared by the Audit Committee before consideration by the Board of Directors.
The risk assessment results in control objectives that support meeting the fundamental financial report-. The risk assessment is updated annually by the Company, and is reported to the Audit Committee.
Moreover, the Company has a risk management process designed to constantly identify, prioritise and manage material business risks in general.
The risk landscape is in some respects similar to the risk assessment for financial reporting, but includes other risks such as the availability of competent staff and political decisions.
The Audit Committee shall continually monitor this process and report regularly to the Board of Directors. For a complete description of the industry and business-related risks.
The most material risks identified in terms of financial reporting are managed through control structures in processes.
Control activities are designed and documented at the process level, and include both overarching and more specific controls with the purpose of preventing, detecting and correcting errors and discrepancies.
When devising control activities, accurate and timely performance thereof is ensured. Control activities span everything from the review and monitoring of performance outcomes to specific account reconciliations.
General IT controls are established for the systems that support the processes that affect internal control regarding financial reporting.
Areas that are covered by control activities include: Monitoring of control activities is continuously conducted to ensure that risks have been satisfactorily observed and addressed.
Monitoring encompasses both formal and informal procedures applied by the Company. Such procedures include monitoring profit vs.
The Board of Directors continuously evaluates the information provided by Company management. The process includes both reconciliation of monthly financial reports vs.
Through the Audit Committee, the Board of Directors examines and assesses the internal control organisation and function.
NetEnt has information and communication channels with the purpose of promoting complete and accurate financial reporting.
Only a limited number of people in the functions. Guidelines and manuals of importance for financial reporting are updated and communicated to those concerned as new employees are introduced, and in the event of potential changes, to all affected staff.
There are both formal and informal communication channels to senior executives and the Board of Directors for information from employees.
For external communication, there are guidelines for the Company with stringent demands on accurate and relevant information for the market.
The Board of Directors annually adopts an information policy for the Company, which includes guidelines for contacts with analysts and the media.
Prior to each quarterly earnings report, a reminder is sent about the rules to all staff. The Company already had an internal audit function in place regarding antimoney laundering procedures.
The most recent complete internal audit took place in and was performed by EY. NetEnt is a provider of digitally distributed games and gaming systems for online casino, used by gaming operators around the world.
NetEnt is an operating and development company and does not conduct any gaming operations of. For further information about the business model, see pages 14— The Board of Directors bears ultimate responsibility.
In the group management, the Communication Director bears overarching responsibility for sustainability work, and the rest of the management group are responsible for specific areas, shown in the table below.
Read more about this on pages 16— In dialogue with its stakeholders, NetEnt has identified the most material areas of sustainability.
These are shown in the table below together with targets and outcomes for the year in each area. This means that the games are designed with functions that enable the operators to allow the player to stay in control of their gaming, for example by setting an upper limit to their bets or gaming time, by reducing playing speed or by turning off certain functions.
Internal guidance and training All employees are trained in responsible gaming, and those with special responsibility undergo in-depth training.
Formal guidance in the area is also provided through the following policies and processes, which contribute to the company's ability to fulfill its sustainability targets.
Promoting responsible gaming is fundamental to NetEnt and a condition for the licences it holds. Although NetEnt has no direct contact with the individual players, the company works actively and in close cooperation with other market participants to prevent gamingrelated problems.
For some people, gaming can turn into an addiction that threatens physical, psychological and social wellbeing. The Public Health Agency estimates that around 2 percent of the population aged between 16 and 84 have issues with their gaming.
Out of people who have placed in the past year, the percentage of problematic gaming is estimated at 3 percent of players. At the same time, players should be aware that gaming, just like other forms of entertainment, costs money and that losing is also possible.
NetEnt is also verified by the. Each year eCOGRA examines the development environment at NetEnt, verifies and ensures that the software is securely and reliably maintained and operated, and that the company is continuously tested by other independent agencies.
Anti-corruption and antimoney laundering Zero tolerance, clear guidelines and staff training. NetEnt applies zero tolerance and clear guidelines against money laundering and corruption.
All employees undergo training in the work against corruption and money laundering. The following policy instruments are used in this area to realise the sustainability targets: NetEnt prioritises measures to ensure that staff thrive and develop in their workplace.
There is a great focus on the regular employee survey that is conducted several times each year and followed up with analysis and measures to improve the work environment.
The majority of the nominating committee members shall not be members of the Board of Directors or be employed by the Company.
If a member of the nominating committee resigns prior to the end of the term, a replacement can be appointed after consulting with the largest shareholders of the Company.
Unless special circumstances so requires, no changes should be made to the composition of the nominating committee if only marginal changes to the number of votes has occurred or if changes occur less than three months prior to the AGM.
The nominating committee shall appoint a chairman at the first meeting of the term. The nominating committee shall have the right to obtain resources from the Company such as for example secretarial assistance, or use of executive search consultants if deemed necessary at the expense of the Company.
Resolution on guidelines for remuneration to senior executives agenda item 17 The Board of Directors proposes that the AGM resolves on the following general guidelines for remuneration to senior executives.
The proposal corresponds to the current guidelines without any changes. The Board of Directors proposes that the maximum pension premium for the CEO and other senior executives shall remain at 35 per cent of the pension based salary.
The Board of Directors also proposes that the cap of variable remuneration shall remain at 65 per cent of the fixed remuneration for the CEO and at 60 per cent of the fixed remuneration for other senior executives.
Remuneration and other conditions of employment for senior executives shall, from both a short-term and long-term perspective, be competitive and create good prerequisites for retaining and motivating competent employees and attracting new employees when needed.
In order to achieve this, the Company shall have fair and internally balanced conditions which are also competitive in the market.
The conditions of employment for senior executives should contain a well-balanced combination of fixed and variable remuneration, share-based incentive programs, pension benefits, and conditions for giving notice and severance pay.
Compensation should be based on performance, and should therefore consist of a combination of fixed and variable remuneration, where adjustable compensation constitutes a relatively large part of total compensation.
The Board of Directors shall be able to deviate from the guidelines provided that there are special grounds in a specific case.
Share split and automatic redemption procedures agenda item 18 The Board of Directors proposes that the AGM resolves on an automatic procedure for redemption in accordance with the contents of agenda items 18a — 18c below.
It is proposed that all resolutions are conditional upon each other and made jointly as one resolution.
The approval of shareholders by at least two thirds of both the votes given and the shares that are represented at the meeting are required for a valid resolution.
One of these shares will be a so-called redemption share. The Board of Directors proposes that the Board of Directors be authorized to determine the record day for the share split, which, at the time of this summons is planned to be 9 May Resolution on the reduction of the share capital by automatic redemption of shares agenda item 18b The Board of Directors proposes that the AGM resolves that the share capital should be decreased by SEK , The shares to be redeemed are constituted of the shares that are called redemption shares after the share split has been carried out in accordance with the above.
Payment for each redemption share will be SEK 2. Any redeemed redemption shares of series A or series B that are held by the Company will be redeemed without repayment and such amount will be allocated as unrestricted equity to be used by the AGM.
The total redemption settlement amounts to maximum SEK ,, The Board of Directors proposes that trading in series B redemption shares should occur during the period from and including 14 May up to and including 25 May The Board of Directors proposes that the Board of Directors is authorized to determine the record day for the redemption of redemption shares, which at the time of this summons is planned to be 29 May No new shares will be issued in connection with the increase in the share capital.
Resolutions on authorisation for the Board to resolve on acquisition of own shares and transfer of own shares agenda item This also constitutes cause for deviation from the preferential rights of the shareholders.
The approval of shareholders by at least two thirds of both the votes given and the shares that are represented at the meeting are required for a valid resolution under this item