HeidelbergCement – Annual General Meeting
On 10.05.2017, the Annual General Meeting took place at the Kongresshaus Stadthalle Heidelberg/Germany. In his speech to about 340 shareholders, Dr. Bernd Scheifele, Chairman of the Managing Board, offered a look back at HeidelbergCement’s successful development in 2016. The acquisition of Italcementi has clearly strengthened HeidelbergCement. The combination created the global market leader in aggregates, the second largest producer of cement and the global number three in ready-mixed concrete. Revenue, result from current operations, cash flow, and profit for the financial year adjusted for non-recurring effects increased significantly with the consolidation of Italcementi since 01.07.2016. In addition, HeidelbergCement has earned a premium on the costs of capital also in the year of the acquisition. The integration of Italcementi is progressing faster than expected and the synergy target was increased: Annual run-rate synergies of € 470 million should now be realised by 2018 compared with € 400 million planned before. The strategic priorities of shareholder returns and continuous growth are clearly reflected in the considerably increased dividend. Due to the strengthened business profile after the Italcementi acquisition and an improved creditworthiness, HeidelbergCement has been assigned an investment grade rating by the rating agencies Moody’s Investors Service, S&P Global Ratings and Fitch Rating. Thereby, the company has achieved a core strategic target and is very well positioned to benefit from improved financing conditions. Despite the financing of the acquisition of Italcementi, the financial result in 2016 was already improved considerably. In the last 12 months, HeidelbergCement was able to further enlarge its shareholder structure and gain long-term interested investors as shareholders. In the year 2016, the HeidelbergCement share price developed very positively and outperformed the DAX for the third year in a row.
Outlook confirmed for 2017
Dr. Bernd Scheifele also reported on the results and developments in the first quarter of 2017, and confirmed the outlook for the remainder of the year given at the publication of the 2016 annual results in March 2017. “We continued our strong operational development in the first quarter of 2017,” said Dr. Bernd Scheifele. “We remain cautiously optimistic about 2017 and are well positioned globally to achieve our strategic goals – continuous growth and sustainable returns for our shareholders.” www.heidelbergcement.com