AdHoc: S&T AG – Proposal to suspend the announced dividend payout for the financial year 2019

24.04.2020 | Austria

Given the latest developments in the global corona pandemic and the official recommendations from authorities and legal restrictions in terms of government support for dividend payouts, the S&T AG Board of Directors and Supervisory Board have today decided to propose to the Annual General Meeting that the dividend payout of 19 cents per share for the financial year 2019 - announced on 26 March 2020 – shall be suspended. Furthermore, subject to the reservation of a positive development of the 2020 financial year despite the corona crisis, the Management Board and Supervisory Board have agreed to propose the dividend announced for 2019 as an additional dividend to the Annual General Meeting, which will decide on the usage of profits generated in the current 2020 financial year.

At the moment, it is difficult to assess the effects of the global corona pandemic on S&T AG and its subsidiaries. Although the financial means of S&T AG would make it possible to pay a dividend at any time, the Board of Directors and the Supervisory Board concluded today that the dividend payout should be suspended for the time being. Doing this will allow the company to maintain flexibility in benefiting from any further government subsidies or guarantees. In several countries S&T Group is already making temporary use of government support in the form of shortened working hours models for example, in order to minimize the effects of the corona pandemic on S&T Group as far as possible. Moreover, the S&T AG Board of Directors will waive 20% of its salary for the duration of the corona pandemic measures as an active contribution to alleviating the current situation.

The S&T AG Annual General Meeting will take place as planned on 16 June 2020 in the form of a virtual AGM.