PRESS NEWS
2020.09.10
Confirmed resolutions: RÁBA successfully closed business year 2019

On the initiative of shareholders, RÁBA Plc. held a General Meeting on 10 September 2020 with the aim of ex-post approving the resolutions passed by the Board of Directors in the competence of the General Meeting in accordance with the spring epidemiological regulations.


The General Meeting – ex-post approving the resolution of the Board of Directors without any change – accepted the report of the Board of Directors on the business operation of the company in the year 2019. Rába Group concluded the business year 2019 with a total comprehensive income amounting to HUF 572 million and consolidated total assets of HUF 41.6 billion. The company recorded a 2.4 percent increase in sales in 2019 operating on volatile key markets. The achieved consolidated sales revenue of nearly HUF 50 billion was the highest turnover of the last decade. RÁBA's operating profit was HUF 1.3 billion, and the group-level EBITDA generated nearly HUF 3.5 billion.

RÁBA’s GM approved the company’s consolidated annual report based on the following main figures:

The General Meeting – appropriately updating the dates related to the payment of dividend – ex-post approving the resolution adopted by the Board of Directors in the competence of the General Meeting without any change, resolved that the company shall pay a dividend of HUF 20.00 per each share with the face value of HUF 1 000 from the company’s untied retained earnings supplemented by the aftertax profit of the financial year 2019. The company will inform the shareholders about the technical details of the dividend payment in a separate announcement.

The General Meeting did not discuss for ex-post approval the resolution of the Board of Directors in the competence of the General Meeting authorizing the company to sell the nearly 43,000 square meters of property described in the submission under the conditions as defined in the submission, at the minimum price of EUR 6,604,232 + VAT by auction via the Electronic Auction System operated by MNV Zrt., and to sign a contract of sale with the bidder offering the highest purchase price. Pursuant to the authorization, the company signs a contract with MNV Zrt. for services necessary for conducting the auction.

The appointment of the auditor of the company expired on the day of the annual general meeting. The "in-general most advantageous" bid received for the closed tender for the audit activities for the FYs 2020-2022 was submitted by KPMG Hungária Könyvvizsgáló, Adó és Közgazdasági Tanácsadó Kft. The General Meeting – ex-post approving the resolution of the Board of Directors in the competence of the General Meeting where at the request of the audit company there was a change in the persons of the auditor in charge and the deputy auditor – appointed KPMG Hungária Könyvvizsgáló, Adó és Közgazdasági Tanácsadó Kft. as auditor for the company’s individual and consolidated financial statements in accordance with IFRS for the period ending with the annual general meeting closing the financial year 2022, until April 30, 2023, the latest.

The General Meeting – ex-post approving the resolution of the Board of Directors in the competence of the General Meeting without any change – confirmed that as of 30 April 2020 dr. Ákos Mátyás Pálvölgyi was recalled from the Board of Directors, and dr. András Ákos Toperczer was elected as member of the Board of Directors for a definite period of 30 April 2020 until 19 May 2021.

The General Meeting – ex-post approving the resolution of the Board of Directors in the competence of the General Meeting without any change – accepted the new Rules and Policy of Remuneration in accordance with the submission.

István Pintér, Chairman-CEO of RÁBA Automotive Holding Plc. assessed the situation in connection with the epidemic started in 2020 and the consequences of the global economic crisis:

"Thanks to our diversified markets and product portfolio, we are present in four regions and five market segments, so the company's business units have not been equally affected by Covid-19. In addition, our customers are leading automotive companies in all regions, with whom deliveries have successfully resumed following the shock caused by the first wave. Based on our current draw downs, there are already signs of a market recovery. Accordingly, our short-term priority is to meet the rapidly changing, often hectic needs of our customers with flexible operation. Our goal for this year is a positive operating cash flow and to restore profitable operation in the second half of the year. In the medium term we will continue our product and technology innovation, production automation, and the digitization of our business processes in line with our strategic plans, aiming for a 10 percent EBITDA efficiency."