Andritz - AGM 07 July 2020
General: The AGM is to be held in the form of a virtual AGM in accordance with the Austrian COVID-19 Company Law Act and COVID-19 Company Law Regulation. The physical presence of shareholders or their authorised proxies is not possible. The voting rights may therefore be exercised solely by granting authority to the special proxies designated by the Company.
Item 2: Management and Supervisory Board are proposing a dividend of EUR 0.50 per share (decreased by 67.74% from EUR 1.55) which corresponds to a payout ratio of 39.37% per share (EPS: EUR 1.27). We note that the initial dividend proposal which provided for a dividend of EUR 0.70 per share has been amended by the Management Board and the SupervisoryBoard and that on 23 March 2020, the Company suspended its sales and earnings forecast for financial year 2020 due to the global COVID-19 crisis.
In view of the recent events relating to COVID-19, ECGS is in favour of postponing decisions on the dividend, reductions or suspensions that would allow companies to avoid liquidity risks or not generate risk for their survival. The dividend is covered by earnings and free cash flow and can thus be provided by the Company. We recommend support.
Item 8: Approval is sought for the remuneration policy for the Management Board and Supervisory Board in a bundled resolution which is not considered as best practice by ECGS. While we have no concerns over the remuneration policy for the Supervisory Board, we recommend opposition due to various concerns over the policy's disclosure and the remuneration structure for Management Board members.
Andritzis develops production systems and industrial process solutions for standard and specialized products. Co. maintains five business areas. Pulp and Paper provides technology and services for production of various grades of pulp and fiber for the manufacture of paper, board and tissue. Metals develops and manufactures plants for the production of cold-rolled carbon steel, stainless steel, and non-ferrous metals strip. Environment and Process provides products and services for mechanical and thermal solid or liquid separation. Feed and Biofuel develops and produces equipment for production of feed. Hydro supplies turnkey electromechanical equipment and services for hydro power plants.
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