Ángel Simón pampers shareholders with more dividend in his first Indra board meeting

MadridThe Catalan executives Àngel Simón and Josep Maria Recasens made their debut this Tuesday as non-executive chairman of Indra and CEO of the same company, respectively, before their shareholders. The technology and defense company, which aims to be the "champion" of the sector in Spain, held its general shareholders' meeting this Tuesday, the first with these two executives working in tandem at the helm. But also the first meeting after months marked by internal turmoil over the exit of the Escribano brothers from the company – in May they divested 14.3% of Indra's share capital after the possible integration between Indra and their family business, Escribano Mechanical & Engineering (EM&E), failed – as well as the departure of José Vicente de los Mozos, CEO of the company until very recently. in May they divested 14.3% of Indra's share capital after the possible integration between Indra and their family business, Escribano Mechanical & Engineering (EM&E), failed–, as well as the departure of José Vicente de los Mozos, CEO of the company until very recently.

In this context, one of Simón's first moves has been to please shareholders, to whom he has promised a 20% increase in dividend compared to the previous year: Indra will distribute 0.30 euros per share. This improvement in remuneration is the result of the good performance of Indra's business due to the increase in public spending on defense.

The fact is that Indra's investors have encountered a very different company compared to the last shareholders' meeting, at least organically. A year ago, at the company's last conclave, the president was Ángel Escribano i De los Mozos, its number two. The moves have not gone unnoticed during the meeting. Nor has the role played by the State, which through SEPI is the main shareholder with 28% of the share capital. One of the shareholders who asked to speak demanded the "resignation" of Àngel Simón for having arrived at Indra sponsored by the Spanish government. Be that as it may, both Simón and Recasens have been ratified as president and CEO by the shareholders' meeting.

"I believe in the project and I believe I can contribute to it," said Recasens. The former Renault executive, from a sector with which the defense industry seeks to create alliances, highlighted that Indra "is at a moment when decisions will mark its [position] for the next decade". "It is a company that has unique capabilities in Spain and Europe, operating in critical sectors for security. [...] The objective is for Indra to have a higher volume in the next three years," he added.

Benefits for rearmament

What hasn't changed as much, however, compared to a year ago, is the path Indra wants to follow: to be the "leading" company in the State in the military field. Thus, if at last year's general meeting of shareholders it was agreed to amend the company's statutes to introduce this business as one of the company's areas of activity, this Tuesday Simón and Recasens have reiterated this journey: "The ability to maintain trust in the face of external threats, not only physical but also hybrid, is today the essential objective of the European defense ecosystem. [...] It is a condition of legitimacy [...] for the companies that participate in it," said Simón.

The company's president has also extended a hand to both European and non-European competitors: "Alliances with other companies in the sector are a necessity, not an option," said the executive. "Fragmentation must be overcome," he reiterated. Indra is precisely exploring how to make peace with the defense company Santa Bárbara, a subsidiary of the American General Dynamics, to reach an understanding around Spanish government contracts to achieve 2% of GDP in defense.

Indra has announced that it is postponing the review of its strategic plan, which was scheduled to be presented just after the summer. Now, the company plans to present it before the end of the year. This new roadmap will seek to position the company in the race for major military contracts in Europe and Spain.