HeidelbergCement – AGM 4 june 2020
General: The AGM is to be held in the form of a virtual AGM in accordance with the German Law to Mitigate the Consequences of the COVID-19 Pandemic. The physical presence of shareholders or their authorised proxies is not possible. The voting rights ay therefore be exercised solely by postal vote or by granting authority to the proxies designated by the Company.
Item 2: In view of the scope and extent of the COVID-19 pandemic and the still high level of uncertainty regarding future developments, the Management Board and the Supervisory Board of HeidelbergCement AG have decided to suspend the progressive dividend policy for the time being in order to maintain a good financial profile of the Company and reduced the dividend proposal from EUR 2.20/share to EUR 0.60/share. The Company however reaffirmed its fundamental position of returning to its previous dividend policy once the COVID-19 crisis has been overcome, with a dividend that will at least remain constant or rise in the medium term to approx. 40% in relation to the Group's share of profit. 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. We therefore recommend supporting the adjusted dividend proposal.
Item 5: PwC, Frankfurt, is proposed as auditor for the current financial year as well as for the interim reports for the first half of 2021. Between 1948 and 2019, Ernst & Young has audited the Company. This term of office significantly exceeded our maximum acceptable term of office of 10 years or 20 years in cases where an audit tender has taken place after the initial engagement period. We therefore welcome that the Company has performed an audit tender in 2019 and announced to change the audit firm as of financial year 2020 and recommend supporting the proposal.
HeidelbergCement is engaged in the production and distribution of cement and aggregates, concrete and building products. Co.'s product range is complemented by downstream activities, such as ready-mixed concrete, concrete products, and concrete elements; in some countries, asphalt and building products, such as bricks and roof tiles, lime, or sand-lime bricks, are also manufactured. Furthermore, Co. provides services such as worldwide trading in cement and coal by sea. Co.'s products are used for the construction of houses, infrastructure, and commercial and industrial facilities.
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