DGAP-Adhoc: SHW AG: Outlook for the fiscal year 2019 determined by a slower ramp-up of Chinese activities and the transition to WLTP

ANNOUNCEMENT ON INSIDER INFORMATION PURSUANT TO
ARTICLE 17 OF REGULATION (EU) No 596/2014

SHW AG: Outlook for the fiscal year 2019 determined by a slower ramp-up of Chinese activities and the transition to WLTP

Aalen, 17 October 2018. The Management Board of SHW AG today closely examined the sales and earnings projections for the medium term.

Primarily in the wake of a slower ramp-up of the Chinese business activities and the uncertainties arising from the transition to the new WLTP emissions testing cycle, SHW AG is now projecting Group sales for fiscal year 2019 to lie in a range between EUR 440 million and EUR 480 million (previous forecast: EUR 540 million to EUR 560 million; 2018e: EUR 420 million to EUR 440 million). The adjustment to the sales forecast is solely attributable to the Pumps and Engine Components business segment. The sales of the Brake Discs business segment are expected to continue developing in line with the previous forecasts.

Based on the latest information, the Management Board considers an EBITDA margin of between 8.5 and 10 per cent to be realistic for the fiscal year 2019 (previous forecast: 11.5 to 12.5 per cent).

The performance targets for the fiscal year 2020 (Group sales of more than EUR 600 million; EBITDA margin of at least 12 per cent) will not be realized. The guidance for the fiscal year 2020 will be announced together with the publication of the preliminary financials for the fiscal year 2019.

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