Business News
Strong shareholder approval of company strategy
Friday 11. May 2018 - In addition to a presentation by president and CEO Claus Bolza-Schünemann outlining the companys performance in 2017 and the first quarter of 2018, details of the growth strategy being pursued and medium-term earnings targets of printing press manufacturer Koenig & Bauer AG played a key role at the companys 93rd annual general meeting, which was presided over by supervisory board chairman Dr Martin Hoyos.
In the absence of any material deterioration in global economic and political conditions for the international business, the management board expects to achieve organic growth of around 4% in group revenue and an EBIT margin of around 7% in 2018. With its targets for the current financial year Koenig & Bauer is on track to achieving its EBIT margin target of 9% and an organic revenue growth rate of around 4% p.a. by 2021.
Alongside the gains achieved in service and packaging markets, at the annual general meeting held at the Vogel Convention Center (VCC) in Würzburg Claus Bolza-Schünemann highlighted the companys good progress with product innovations as additional profitable growth beyond its medium-term goals. Focus is on the large and significantly growing market for direct printing on corrugated board and two-piece can decorating: “With new and further developments, we focus on products and services for the growth markets of packaging, digital and industrial printing, allowing our customers to unlock added value via a sustainable business model. We are increasingly placing store by the “Internet of Things” and proactive service offerings based on an analysis of customers specific press and production data. We are committed to achieving the utmost customer satisfaction and long-term customer loyalty through higher customer benefits of our innovative and tailor-made high-tech products and services.”
Shareholders approve dividend proposal of 0.90
In addition to share price gains, shareholders were pleased with the dividend proposal of 0.90 per share, which reflected the groups strong earnings performance, approving it almost unanimously. The dividend is based on Koenig & Bauer AGs retained profit of 14.9m. CEO Claus Bolza-Schünemann: “With a distribution rate of 18.4% of the groups net profit we want our shareholders to participate appropriately in our success and we continue our dividend policy with a rate of between 15% and 35% of group net income.”
Large majority approve further agenda items
Alongside the discharge of duties with regard to the members of the management and supervisory board, shareholders elected KPMG Bayerische Treuhandgesellschaft in Nuremberg as public auditors and group auditors in 2018. Furthermore, the AGM approved the current remuneration system for the management board. Shareholders agreed to the profit transfer contracts between Koenig & Bauer AG and KBA-Kammann GmbH as well as Koenig & Bauer AG and KBA-Metronic GmbH. In addition, the management board was authorised to conclude a profit transfer agreement between KBA-Industrial Solutions AG & Co. KG and KBA-Gießerei GmbH.