DGAP-News: SHW AG / Key word(s): AGM/EGM/Dividend

10.05.2017 / 08:35
The issuer is solely responsible for the content of this announcement.



SHW AG: Annual General Meeting resolves dividend payment of EUR 1.00 per share

- Significant improvement in sales and margins from 2018 onwards

- Extensive investment programme to establish and expand international sites

- Foundation for the entry into the market of fully electric vehicles laid

Aalen, 10 May 2017. There was a great deal of interest among SHW shareholders at the sixth Annual General Meeting of SHW AG in Heidenheim on 9 May 2017, with an attendance rate of 56.60 per cent.

In his speech, Chief Executive Officer Dr Frank Boshoff gave a positive summary of the past fiscal year. "Despite a significant 12 per cent decline in sales to EUR 406 million, we were able to slightly improve our EBITDA figure on the previous year. The EBITDA margin improved from 9.4 per cent to 10.7 per cent." This was made possible by the manifold measures to improve the production and business processes.

Looking at fiscal year 2017, he emphasised it will be a year of transition for SHW and, in particular, of setting the course for the future. "This means that we will consistently follow through on internationalising our business as part of our 'SHW 2020' strategy."

From 2018 onwards, the Company once again expects a significant increase in sales and earnings. As such, Group sales are to be increased in a range of EUR 620 million to EUR 650 million in the period up until 2020. Business outside Europe will account for almost one quarter of this. In the same period, the EBITDA margin should increase to at least 12 per cent.

For fiscal year 2017, the Company is planning capital expenditure of slightly above 7 per cent of Group's sales in connection with its development of new markets in China and North America as well as the establishment of the new production site in Romania. This capital expenditure mainly relate to the development of the Group's production capacities at its international sites and to assembly lines and foundry and processing centres in Germany. The investment ratio should settle at 5 to 6 per cent from 2018 onwards.

Regarding the topic of electromobility and the SHW product portfolio, Dr Boshoff stated, "Our components for engine and transmission applications for conventional drive concepts and brake discs and their continuous development will continue to form the basis of our business success over the next few years. The development of an electrically driven cooling and lubricating pump for e-axles for a European company, which can be used in both hybrid and battery-powered electric vehicles, serves as the foundation for SHW's entry into the market of fully electric vehicles. The Brake Discs business segment is also active in the field of e-mobility. Our composite brake disc for fully electric vehicles meets a high demand."

Draft resolutions adopted with large majorities

As proposed by the Management Board and the Supervisory Board of SHW AG, the distribution of a dividend of EUR 1.00 per share has been resolved. This represents a payout ratio of 50.3 per cent of the Group's net profit for fiscal year 2016.

The other draft resolutions of the Management Board and the Supervisory Board were passed with large majorities. Details of the voting results regarding the individual items of the agenda of the Annual General Meeting can also be found on the Company's website at http://www.shw.de/cms/en/investor_relations/annual_general_meetings/agm_2017/


About SHW

The Company was established in 1365 making it one of the oldest industrial companies in Germany. Today, SHW AG is a leading automotive supplier providing products that make a substantial contribution to reducing fuel consumption and, consequently, to lowering CO2 emissions. In its Pumps and Engine Components business segment, the SHW Group develops and produces pumps for passenger vehicles and industry applications (e.g., trucks, agricultural and construction vehicles, stationary engines and wind farms) as well as engine components. The Brake Discs business segment develops and produces monobloc ventilated brake discs made of cast iron and composite brake discs made of a combination of an iron friction ring and an aluminium pot. The SHW Group's customers include renowned automotive manufacturers, manufacturers of commercial, agricultural, and construction vehicles as well as other suppliers to the automotive industry. Currently, the SHW Group has four production sites in Germany located in Bad Schussenried, Aalen-Wasseralfingen, Tuttlingen-Ludwigstal and Neuhausen ob Eck, one site in Brazil (Sao Paulo) and China (Kunshan) and has a sales and development centre in Toronto, Canada. Besides, SHW Automotive GmbH also holds a 51 per cent interest in the joint venture SHW Longji Brake Discs (LongKou) Co., Ltd., in LongKou (China). With just over 1,250 employees, the Company generated Group sales in fiscal year 2016 of EUR 406 million. Further information is available at: www.shw.de


Contact person

Michael Schickling

Head of Investor Relations & Corporate Communications


Telephone: +49 (0) 7361 502 462

Email: michael.schickling@shw.de

Future-oriented statements

This press release contains certain future-oriented statements that are based on current assumptions and forecasts made by the management of SHW AG. Various known and unknown risks, uncertainties and other factors may lead to the actual results, financial position, development or performance of the company deviating considerably from the appraisals specified here. The company assumes no obligation to update future-oriented statements of this nature or adapt them to future events or developments.


This announcement is for information purposes only and does neither constitute an offer to sell, purchase, exchange or transfer any securities nor a solicitation of any offer to sell, purchase, exchange or transfer any securities.

The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. SHW AG does not intend to register any securities referred to herein under the Securities Act or with any securities regulatory authority of any state or other jurisdiction in the United States in connection with this announcement.

10.05.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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