EIFFAGE (EPA:FGR) - Eiffage - Withdrawal of the dividend proposal submitted to the 22 April 2020 combined general meeting

Transparency directive : regulatory news

31/03/2020 20:36

Vélizy-Villacoublay, 31 March 2020
20:30

Press Release

  Withdrawal of the dividend proposal submitted to the 22 April 2020 combined
                               general meeting

On 26 February 2020, Eiffage reported solid annual results for 2019: sustained
business growth, a sharp increase in net profit and significant free cash flow
generation, which enabled the financing of significant growth investments.
Therefore, it was logical that the Board would propose to increase its dividend
at the general meeting of shareholders scheduled for 22 April 2020. As in the
past, the proposed dividend was moderate (38% of net profit, Group share), as
the Group wished to retain room for manoeuvre to consolidate its development
and strengthen its balance sheet.

On 24 March 2020, Eiffage issued a press release on the impact of Covid-19 on
its operations, stating that the health crisis had disrupted both its
Contracting and Concessions activities, which naturally led it to revise its
outlook for 2020.

In response thereto, the Group took various measures to limit the impacts of
this crisis on its results, including implementing partial unemployment
measures in France and in its European footprint as many Contracting sites had
been halted.

Given the unprecedented health, social and economic situation of the countries
where the Group operates, and in a spirit of responsibility towards all its
stakeholders, the Board of Directors, at its meeting held on 31 March 2020,
adopted an exceptional decision to withdraw the dividend distribution proposal
to be submitted to the general meeting of shareholders scheduled for 22 April.

However, Eiffage would like to make it clear that this decision was not adopted
due to liquidity constraints. The Group would have been able to pay its
dividend while retaining sufficient cash to deal with the current situation and
continue its development.

Moreover, when comes the time to decide on its next dividend distribution, the
Board will take this exceptional decision into account.

The Board of Directors' decision leads to amending the draft third resolution
on "Appropriation of the profit for the financial year and declaration of a
dividend", withdrawing the proposal to pay a dividend of EUR2.80 per share and
proposing that the entire profit for financial year 2019 be appropriated to
retained earnings.

The agenda and draft resolutions set out in the notice of meeting published in
the BALO on 16 March 2020 will be amended accordingly in the notice of meeting
to be published in the BALO on 3 April 2020, which will also be available on
the company's website.

At the request of its Chairman and Chief Executive Officer, the Board also
approved the application, effective immediately, of the Afep recommendations
dated 29 March 2020 on the remuneration of corporate officers.

Shareholders are invited to regularly visit the section of the website
dedicated to the general meeting of shareholders at:
www.eiffage.com/finance/assemblee-generale-eiffage.

Investor contact
Xavier Ombrédanne
Tel.: + 33 (0)1 71 59 10 56
xavier.ombredanne@eiffage.com

Press contact
Sophie Mairé
Tel.: + 33 (0)1 71 59 10 62
sophie.maire@eiffage.com

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23/04/2024 17:45

EIFFAGE (EPA:FGR) - Eiffage - Withdrawal of the dividend proposal submitted to the 22 April 2020 combined general meeting

Transparency directive : regulatory news

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