2020

20.04.2020 – Jungfraubahn Holding AG

Jungfraubahn Holding AG: Jungfraubahn Holding AG to forgo payment of dividends

Jungfraubahn Holding AG / Key word(s): Dividend
Jungfraubahn Holding AG: Jungfraubahn Holding AG to forgo payment of
dividends

20-Apr-2020 / 18:54 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.

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Jungfraubahn Holding AG to forgo payment of dividends

Jungfraubahn Holding AG has revised its dividend request to the General
Meeting from 25 March and has now announced that no dividend payment shall
be made for the year 2019. This decision comes in light of the global spread
of coronavirus, as the prospects of a return to normal operation for the
tourism industry have decreased significantly in comparison to prognoses in
March and with the latest decision of the Federal Council. In particular,
there is still no timetable for an exit from the lockdown for the tourism
sector in Switzerland.

Jungfraubahn Holding AG must therefore assume that the results for 2020 will
fall significantly below those of previous years. Compared with the
situation one month ago, the outlook has become considerably worse. Any
swift improvement to the prospects of the tourism sector in the immediate
future is not expected. After the decision made by the Federal Council on 16
April 2020, there continues to be no timetable for an exit from the lockdown
for the sector. Since the closure of all tourism facilities Jungfrau
Railways have been drawing partial unemployment benefit for around two
thirds of their workforce. Consequently, on Monday the Board of Directors
reversed their decision from the end of March, to pay a moderate dividend
which would have been the same as the year before, slightly below the
defined target range.

The Board of Directors has since proposed to the General Meeting of the
Jungfrau Railway Group that a dividend not be paid out for 2019. In so
doing, the business is focusing on the medium-term future and the completion
of the V-Cableway. This will generate value for the region during
construction in addition to optimal conditions for rebuilding the tourism
sector after the crisis has ended. The salaries of the Executive Board will
be significantly lower in 2020, due, among other reasons, to the variable
components of the salary package being cancelled. In addition, the Board of
Directors has chosen to take a collective salary cut.

As a value stock, the Jungfrau Railway Group is well equipped to deal with
these difficult times and to continue building the V-Cableway, thanks to a
solid balance sheet with retained earnings of around CHF 595, which are the
result of a cautious dividend policy in previous years and a current lack of
interest-bearing debt. Nevertheless, this year will also be particularly
tough for Jungfrau Railways and it appears likely that - in order to finish
the V-Cableway - for the first time in a long time the Group will need to
borrow.

The Jungfrau Railway Group's General Meeting will be held in Interlaken on
18 May 2020. It will take place with no physical participation by
shareholders whatsoever. Shareholders will be informed about the format of
the General Meeting and the voting procedure by personal invitation and
publication in accordance with the Articles of Association.

Link:
https://www.jungfrau.ch/en-gb/corporate/investor-relations/jungfraubahn-holding-ag/adhoc-news/


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