ElringKlinger AG

Annual General Meeting approves dividend of EUR 0.50 per share

  • Dividend volume remains stable year on year at EUR 31.7 million; dividend ratio improves to 45.3%
  • Actions of Management Board and Supervisory Board approved by a large majority in both cases
  • Review 2017 and outlook 2018: key strategic milestones for future business development

Stuttgart, Dettingen/Erms (Germany), May 16, 2018 +++ The shareholders of ElringKlinger AG approved a dividend of EUR 0.50 per share for the 2017 financial year at the company's Annual General Meeting (AGM) in Stuttgart. The dividend payment is to be completed on May 22, 2018, the third business day subsequent to the resolution passed by the AGM. All investors holding shares in ElringKlinger AG on May 16, 2018, are entitled to a dividend.

As part of his review of 2017, CEO Dr. Stefan Wolf looked back on a financial year that included important strategic milestones with regard to future business development. "In taking these strategic steps, we have brought the Group further in line with the mobility market of the future. With a product portfolio that includes high-performance fuel cell systems as well as battery systems and complete electric drive units, ElringKlinger is well prepared for the dynamic transition facing the automotive industry," said Dr. Stefan Wolf.

Among the key events for ElringKlinger during the 2017 financial year were the investment in the hofer Group transacted in February and March, the placement in July of a Schuldscheindarlehen (loan granted to the company against a form of promissory note) - covering a total volume of EUR 200 million - for the first time in its corporate history, the signing of a cooperation agreement with Chinese battery manufacturer CITC in November, and an understanding reached in December for the sale of the Hug Group.

In March 2018 the Supervisory Board of ElringKlinger AG made a number of other far-reaching decisions. Effective from April 1, 2018, a new area of Management Board responsibility - covering the field of e-mobility - was introduced under the supervision of Theo Becker. At the same time, Reiner Drews, who had previously been responsible for the Cylinder-head Gaskets and Specialty Gaskets divisions, was appointed to the Management Board. As successor to Theo Becker, he became the Group's new COO. Furthermore, the Supervisory Board extended the contract of CFO Thomas Jessulat by five years as from January 1, 2019, i.e., until the end of December 2023.

In addition to charting its strategic course, ElringKlinger again saw its business grow significantly at an operational level in fiscal 2017. Group revenue expanded by 6.8% to EUR 1,664 million, while earnings before interest and taxes totaled EUR 137.3 (135.2) million. In terms of ElringKlinger's bottom-line result, however, the positive effects of revenue growth were offset by adverse factors over the course of the year, such as rising commodity prices, additional costs due to the introduction of SAP at a Swiss subsidiary, and follow-on costs associated with consistently high volumes ordered by customers in the NAFTA region as part of their production scheduling. As a result, net income attributable to shareholders fell to EUR 69.9 (78.6) million.

The shareholders of ElringKlinger AG approved by a majority of 99.96% the proposal put forward by the Management Board and Supervisory Board for a dividend of EUR 0.50 (0.50) per share for fiscal 2017, unchanged on the previous financial year. The total distribution will thus remain stable year on year at EUR 31.7 million. The dividend ratio is up at 45.3% (40.3%), i.e., in excess of the Group's dividend policy, as part of which between 30 and 40% of Group net income after non-controlling interests shall be distributed.

As regards fiscal 2017, the AGM approved the actions of the Management Board members with 93.88% and the actions of the Supervisory Board members with 76.92% of the votes. Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft was appointed as the auditor for the financial year 2018.

The AGM, held at the Stuttgart Culture and Congress Center, was attended by around 800 shareholders and guests. In total, 71.52% of the company's share capital was represented at the meeting.

Reprinting free of charge. File copy requested.
For further information please contact:

ElringKlinger AG 
Dr. Jens Winter 
Strategic Communications 
Max-Eyth-Straße 2 
D-72581 Dettingen/Erms
Phone +49 7123 724-88335 
Fax +49 7123 724-85 8335 
E-mail jens.winter@elringklinger.com