Einhell plans stock split to enlarge sharholder base

EQS-News: Einhell Germany AG / Key word(s): Corporate Action
Einhell plans stock split to enlarge sharholder base

14.05.2024 / 10:18 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Einhell plans stock split to

enlarge shareholder base

Landau a. d. Isar, May 14th, 2024 - To make it easier for general investors
to buy Einhell shares and expand their existing holdings, Einhell Germany AG
is planning to split its stock in a ratio of 1:3. The Executive Board has
submitted the relevant proposal to the Supervisory Board for inclusion in
the agenda for the upcoming annual general meeting. Part of a focused
capital market strategy, the measure is to be adopted at the annual general
meeting held June 28th, 2024 and implemented before the end of the year.

Broader-based capital market strategy

"We want to make the preference stock more accessible to a broader base of
shareholders alongside institutional investors. Our long-term goal is to
deliver a rise in the share price and hence our market capitalization, as
the split will make the stock more appealing to investors," says Jan
Teichert, CFO of Einhell Germany AG. "An 'apparent' or 'perceived' higher
euro price per share is something of a barrier to entry for many investors.
That is why the shares are to be split, as this will lower the price and
make it easier to buy the stock. For existing shareholders, the number of
shares they hold will be increased, so there will be no change in terms of
the value of their portfolio. Stock splitting generally tends to enhance the
visibility and attractiveness of the share, and that is also what we expect
to see for the Einhell stock."

The proposed stock split is one of several measures in the company's capital
market strategy. In the preceding years, for instance, research studies had
been commissioned from Warburg Research and Hauck-Aufhäuser/Nuways with the
aim of providing shareholders with a broad range of financial analyses about
the company. The analysts express optimism, giving a clear buy
recommendation based on the Group's strong cash flow and its long-term
strategies, among other reasons.

Mark Schüssler, for example, an analyst at NuWays AG, an affiliate of Hauck
Aufhäuser Lampe Privatbank AG, still sees plenty of potential in the Einhell
share, with the operating cash flow alone coming to 211.7 million euros in
2023. In a research paper issued April 2024, the NuWays analyst recommends
buying Einhell stock at a possible price of 227 euros.

For Warburg analyst Thilo Kleibauer, too, the "highly promising medium-term
growth potential" of the Einhell share is not reflected in the current share
valuation, which has fairly low multiples based on the planned earnings for
2024/25. He recently confirmed his buy recommendation with a DCF price
target of 241 euros. The discounted cash flow (DCF) method is a standard
procedure used internationally to calculate the value of a company.

Consistently high dividend payouts

Shareholders of Einhell Germany AG and the general public will be informed
of the stock split through corporate press releases and communication at
capital market conferences. "We expect the capital market to welcome this
step. The company's dividend policy will not be affected by the stock split.
We intend to continue distributing 20-30 percent of the Group's annual net
income to shareholders in the form of a dividend," says Teichert. Einhell
Germany AG had constantly raised the distributed dividend in recent years,
before keeping it steady after a challenging fiscal year 2023: At the annual
general meeting on June 28th, 2024, the Executive Board and Supervisory
Board of Einhell Germany AG will propose keeping the dividend per share the
same as the previous year. This means that a dividend of 2.90 euros per
preference share and 2.84 euros per common share will be distributed once
again. The current plan will thus result in 10.82 million euros in total
being distributed to holders of common and preference stock.

No charges for shareholders

Investors who hold shares in Einhell Germany AG would see the number of
these shares rise in line with the underlying split ratio. Someone holding
ten shares, for instance, would thus have thirty new shares after the 1:3
stock split. Their price would be reduced by the same ratio, but the total
value of the thirty new shares would be identical to the value of the ten
original shares. There will be no change to the market capitalization
initially, as the split only increases the number of shares in the company
that can be traded.

Holders of Einhell stock will not incur any charges in relation to the
split. The new number of shares will be allocated to their portfolio
automatically following the split. Old par value shares will be collected
and replaced with new shares - the German securities identification code
(WKN) and the International Securities Identification Number (ISIN) will not
normally change. Implementation of the measure will not result in costs of
any kind for shareholders themselves.

Further information:

Research studies on the Einhell share | Einhell.com

About Einhell Germany AG

Einhell, which celebrates its 60th birthday in 2024, is a leading
manufacturer of cutting-edge tools for the home and garden. From its
headquarters in Landau/Isar (Bavaria), the internationally successful
company has continuously expanded its innovative rechargeable battery
platform Power X-Change and is now the market leader in the area of cordless
tools and garden equipment. For many years Einhell has set new standards in
terms of endurance, performance, and safety. Einhell customers appreciate
the freedom of cordless operation for all their DIY projects, as well as the
excellent value for money that Einhell products represent and the
first-class customer service offered by the company.

Jan Teichert, CFO of Einhell Germany AG


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14.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
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The issuer is solely responsible for the content of this announcement.

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   Language:       English
   Company:        Einhell Germany AG
                   Wiesenweg 22
                   94405 Landau/Isar
                   Germany
   Phone:          +49 (0)9951-942-166
   E-mail:         helmut.angermeier@einhell.com
   Internet:       www.einhell.com
   ISIN:           DE0005654933, DE0005654909
   WKN:            565493, 565490
   Listed:         Regulated Market in Frankfurt (Prime Standard);
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Hamburg, Munich, Stuttgart, Tradegate Exchange
   EQS News ID:    1902667

End of News EQS News Service
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1902667 14.05.2024 CET/CEST