4 May 2016

HeidelbergCement – Annual General Meeting

On Wednesday, 4 May 2016, at the Kongresshaus Stadthalle Heidelberg, Germany

In his speech to about 280 shareholders, Dr. Bernd Scheifele, Chairman of the Managing Board, offered a look back at HeidelbergCement’s successful development in 2015. Despite a weakening in global economic growth in the course of the year, HeidelbergCement developed well and met the forecasts and objectives of the financial year 2015. Especially operating income and the profit for the financial year increased significantly. Aside from the Group’s advantageous geographical positioning in countries with solid economic development, this success was primarily due to the programmes to improve efficiency and margins, price increases in key markets, energy costs that were moderately below the previous year, and positive exchange rate effects due to the weakening of the euro.

In addition, HeidelbergCement has, for the first time since the financial crisis, earned a premium on the costs of capital. Net debt was again reduced significantly, and the key financial ratios reached investment grade level. The new strategic priorities of ‘shareholder returns’ and ‘continuous growth’ that were presented in June 2015 are already reflected in the considerably raised dividend proposal and the planned takeover of Italcementi. The combination with Italcementi will create the global market leader in aggregates, the second largest producer of cement and the global number three in ready-mixed concrete. The excellent geographical fit of the assets will strengthen each of HeidelbergCement’s geographic clusters. In addition, following the closing of the transaction, annual run-rate synergies of €400 million should be realized by 2018. Closing of the acquisition is expected in the second half of 2016.

In the last 12 months, HeidelbergCement was able to further enlarge its shareholder structure and gain long-term interested investors as shareholders. Since the beginning of 2015, the HeidelbergCement share price developed very positively and outrun both DAX and MSCI Construction Materials Index.

Outlook raised for 2016

Dr. Scheifele also reported on the results and developments in the first quarter of 2016, and raised the outlook for the remainder of the year. “The year 2016 has started better than expected,” said Dr. Bernd Scheifele. “We have therefore raised our result outlook for the current year from a moderate to a high single to double digit increase. We are confident about 2015 and are well positioned to achieve our goals.”

Annual General Meeting approved dividend by a significant majority

The Annual General Meeting has approved the proposal of the administration to increase the dividend by 73% to €1.30 with a substantial majority of 99.84%. “With the strong increase in the dividend, we are delivering on our promise, to share our successful business development to a greater extent with our shareholders,” explained Dr. Bernd Scheifele. “With the seventh consecutive increase in dividend payment, HeidelbergCement is one of the companies that have increased their dividend payment continuously over the past years.”

Annual General Meeting grants aithorization to buy back shares

More than 98% of the shareholders present supported the proposal to authorise the management to buy back up to 10% of the shares outstanding in the coming five years. “The approval of the share buy-back gives us more flexibility to increase returns to our shareholders,” said Dr. Scheifele. “We will use this option in a responsible way and continue to focus on profitable growth.”

Of the company’s € 563.7 million in subscribed share capital, 74.11% were represented.

About HeidelbergCement

HeidelbergCement is one of the world’s largest integrated manufacturers of building materials with leading market positions in aggregates, cement, and ready-mixed concrete as well as other downstream activities. The company employs some 45,000 people at 2,300 locations in more than 40 countries.

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Andreas Schaller

Group Spokesman, Director Group Communication & Investor Relations
+49 6221 481 13249
+49 6221 481 13217
HeidelbergCement AG
Berliner Straße 6
69120 Heidelberg