Legal Notice

HÖRMANN Finance GmbH (“HÖRMANN”) is considering the early repayment of its corporate bond that is scheduled to mature in 2018 (ISIN: DE000A1YCRD0). The repayment option is being examined with a view to the call option for the existing bond that is available on 5 December of each year, starting in 2016, at a price of 102%.

The technology specialist HÖRMANN Finance (corporate bond: ISIN DE000A1YCRD0) today resolved to expand its investment portfolio in the “Engineering” and “Communication” segments. This will be achieved through the acquisition of an additional equity interest of 52.85% in Funkwerk AG by HÖRMANN Funkwerk Holding GmbH including the netting of receivables, as well as the contribution of a majority interest in VacuTec Messtechnik GmbH by way of a non-cash capital increase. Following the conclusion of these non-cash transactions, which is expected by the end of this year, HÖRMANN Finance will hold 78.35% of the shares in the listed Funkwerk AG (ISIN DE0005753149) and 90% of the shares in VacuTec Messtechnik GmbH.

In its latest rating report, Euler Hermes Rating GmbH has upgraded its rating of the creditworthiness and future potential of HÖRMANN Finance GmbH from “BB-” to “BB”. The rating is expected to see stable development over the next twelve months. Euler Hermes Rating justified its decision with reference to the company’s solid capital structure and the financial flexibility offered by its high level of cash and cash equivalents and efforts to restructure its financing. The rating agency expects the company’s key performance indicators to improve as a result of the planned non-cash capital increase and the reduction in receivables in connection with the cash-neutral acquisition of majority interests in VacuTec Messtechnik GmbH and Funkwerk AG. HÖRMANN Finance also intends to further optimise its medium-term to long-term financing structure and reduce its financial liabilities as a whole. The company is considering the early repayment and partial refinancing of its corporate bond that is scheduled to mature in 2018 (ISIN: DE000A1YCRD0) through the issue of a new bond. A decision will be taken depending on the prevailing market sentiment. The potential capital market transaction will be supported by equinet Bank AG and IKB Deutsche Industriebank AG.

HÖRMANN Industries GmbH (formerly HÖRMANN Finance GmbH; German Securities Code Number (WKN) of corporate bond: A2AAZG) has presented its preliminary figures for the past financial year. The Group, which bundles the operating subsidiaries of the HÖRMANN Group and had around 2,800 employees in the 2016 financial year, generated consolidated sales of EUR 464.6 million (previous year: EUR 435.4 million) and EBIT of EUR 16.9 million (previous year: EUR 11.9 million). Consolidated income after interest and taxes amounted to around EUR 11 million (previous year: EUR 6.2 million). This meant the medium-sized conglomerate achieved substantially higher sales and earnings growth than originally forecast. This was mainly due to the pro rata sales and earnings contributions from the first-time consolidation of Funkwerk AG and VacuTec Messtechnik GmbH in the fourth quarter of 2016 and higher than expected organic growth in the Automotive and Engineering segments. Earnings also include non-recurring expenses of around EUR 4 million in connection with the adjustment of domestic staff capacities at Automotive sites in the form of provisions, which are necessary due to the planned expansion of automation and internationalisation.

HÖRMANN Automotive GmbH, a wholly-owned subsidiary of HÖRMANN Industries GmbH (corporate bond, German Securities Code Number (WKN): A2AAZG), Kirchseeon, and MAN Truck & Bus AG, Munich, today signed an agreement on the full unbundling of their joint shareholder relationship in respect of HÖRMANN Automotive Gustavsburg GmbH. Under the terms of the agreement, HÖRMANN Automotive GmbH will acquire MAN Truck & Bus AG’s 40% equity interest in HÖRMANN Automotive Gustavsburg GmbH, thereby acquiring the previous joint venture for the manufacture of chassis components and body parts for commercial vehicles in full. The agreement will come into effect subject to individual conditions including anti-trust approval.

HÖRMANN Industries GmbH (corporate bond, German Securities Code Number (WKN): A2AAZG) is raising its sales and earnings forecast for the current 2018 financial year in response to its positive business development.

HÖRMANN Logistik GmbH, a subsidiary of HÖRMANN Industries GmbH (corporate bond, German Securities Code Number (WKN): A2AAZG), today concluded a purchase agreement for the acquisition of the majority of the shares in Klatt Fördertechnik GmbH, Neumarkt am Wallersee (Austria). With the strategic acquisition of an initial equity interest of 51% in this specialist for intralogistics systems, HÖRMANN is strengthening the Engineering segment and pressing ahead with the diversification of the Group. The company intends to successively increase its equity interest in Klatt over the coming years. The acquired company will be fully consolidated with retrospective effect from 1 April 2019. Founder, previous principal shareholder and managing director Peter Klatt will remain with the company in a management role. The parties agreed to not disclose the purchase price.

HÖRMANN Industries GmbH today resolved to close its plant in Penzberg (Bavaria), which belongs to the Automotive segment. In this context, HÖRMANN Automotive Penzberg GmbH was spun off from the HÖRMANN Industries Group and transferred to the unconsolidated HÖRMANN equity investment FTH Fahrzeugteileholding GmbH, Chemnitz, effective 1 January 2019.

HÖRMANN Industries GmbH is considering the early refinancing of its corporate bond that is scheduled to mature in 2021 (German Securities Code Number (WKN): A2AAZG / ISIN: DE000A2AAZG8). This course of action is being examined with a view to the call option for the existing bond that is available from 21 November 2019 at a price of 101.5%. With this in mind, the company is also examining the issue of a new corporate bond in the coming weeks including an exchange offer for investors of the existing bond. HÖRMANN Industries is aiming to secure and further optimise its medium- to long-term financing structure at an early stage in what is a favourable interest rate environment. The decision on the early redemption of the existing bond and the issue of a new bond will be taken on the basis of the market environment and the outcome of discussions with investors and financing partners. The potential refinancing will be supported by Pareto Securities AS and IKB Deutsche Industriebank AG as joint lead managers.