Page 372 - Zumtobel Group Geschaeftsbericht 2013-14 EN

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Steady dividend policy
The Zumtobel Group follows a continuous dividend
policy, whereby the amount of the dividend is depen-
dent on the current profitability, earnings forecasts
and general economic developments. Based on the
stabilising economic environment, the Management
Board will make a recommendation to the Super-
visory Board and subsequently to the annual general
meeting of Zumtobel AG on 25 July 2014 calling
for a dividend of EUR 0.18 for the 2013/14 financial
year (2012/13: EUR 0.07).
Outlook and Goals
Forecasts by the International Monetary Fund (IMF)
for the global economy point to moderate growth of
3.6% in the 2014 calendar year and 3.9% in 2015.
However, expectations differ substantially by region.
The USA will remain the central growth driver and
the euro zone will see sound recovery, but momen-
tum in the developing and emerging countries will
continue to slow. These regions are expected to gen-
erate growth of 4.9% in 2014 and 5.3% in 2015.
The IMF has cut its forecasts from Brazil to Russia,
whereby the emerging countries are still responsible
for nearly 60% of worldwide growth. Forecasts for
the industrialised countries point to an increase of
2.2% in 2014 and 2.3% in 2015. The US economy
can hope for a sound plus of 2.8% and 3.0%, respect-
ively, in these two years. Following a 0.5% decline in
the euro zone’s gross national product in 2013, the
IMF is projecting an increase of 1.2% in 2014 and
1.5% in 2015. This more optimistic – compared with
the previous year – outlook is in line with the latest
trends in key sentiment indicators for the euro zone.
Source: IMF forecast,
World Economic Outlook, April 2014
Support for this positive development in 2014 will
be provided, above all, by the countries in Central
and Northern Europe: for example Germany with
plus 1.7%, Austria with plus 1.7%, Great Britain with
plus 2.9% and Sweden with plus 2.8%.
The construction industry in Europe will not make a
substantial contribution to economic recovery during
the current calendar year. However, the November
2013 report by Euroconstruct confirms that the com-
mercial construction sector should stabilise in 2014
after several years of declines. In the seven most
important European markets for the Zumtobel Group
(Austria, Germany, Switzerland, France, Great Britain,
Italy and Scandinavia), Euroconstruct is predicting
growth of 0.1% for the 2014 calendar year and 1.4%
for the 2015 calendar year.
The European construction industry shows signs
of a trend reversal from a declining to a slight im-
proving market environment. In the lighting industry,
this trend is strengthened by the technology shift to
LED and energy efficiency as well as growth oppor-
tunities in the new markets. The Zumtobel Group has
an outstanding position to realise above-average
benefits from the growth impulses in the industry due
to its multi-brand strategy, extensive know-how in light-
ingapplications, strong technologyposition, complete
coverage of the value chain and solid balance sheet
and financing structure. Against this backdrop, the
management of the Zumtobel Group has set a goal
to generate organic growth of 3% to 5% on average
over each of the next three years through an increase
in market shares.
Significant cost savings and efficiency improve-
ments, above all in production and sales, should
support a steady increase in the operating return on
sales (adjusted EBIT margin) from the current level of
approx. 4% to 8% - 10% by 2016/17. In relation to
revenues, production costs should fall three to four
percentage points below the current level of approx.
Facts and Figures
Group Management Report