Semperit decided to effect cost-saving/ restructuring measures for its Sempertrans production site in Argenteuil, France

Disclosed inside information / Adhoc Release

  • Possible complete shutdown of French Sempertrans production site is subject to consultation process with employee representatives and requires regulatory approval
  • One-off expenses of more than EUR 10 million to be expected

On 10 April 2017, Semperit AG Holding (the "Company") announced (according to Article 17 Market Abuse Regulation) that it will review measures for improving the profitability of the Semperit Group.

In this context, the Management Board of the Company resolved, with the consent of the Company's Supervisory Board, after thorough analysis of potential alternatives to carry out cost-saving and restructuring measures in relation to the production site of its 100% subsidiary Sempertrans France Belting Technology S.A.S. in Argenteuil, France (the "French Production Site"). These measures could also include the possible complete shutdown of the French Production Site. The office of Sempertrans France Belting Technology S.A.S. in Levallois, France, will not be subject to such cost-saving and restructuring measures. All other activities of the Semperit Group in France are not affected by these measures.

The decision by the Management Board and the Supervisory Board will, from today's perspective, lead to exceptional charges and one-off expenses for the Semperit Group of more than EUR 10 million. This amount takes into account a possible complete shutdown of the French Production Site and the likely costs in connection therewith, as well as additional effects on the balance sheet of the Semperit Group (e.g., write-offs and other value adjustments of assets).

The exact costs will only be available once a special consultation and negotiation procedure with the representative bodies of the affected French employees, which is mandatory under French law, will have been finalized. This special procedure entails negotiations with a view to alternative solutions to the potential shutdown of the French Production Site, determining alternative job opportunities of the staff members of the French Production Site within the Semperit Group, potential support in relation to outplacements, possible (re-)training measures, payments under a social compensation plan and/or additional accompanying measures as provided for by French law. The special consultation and negotiation procedure will be initiated today and will take approximately up to three months. The outcome of this special consultation and negotiation procedure will determine which cost-saving and restructuring measures will ultimately be implemented in relation to the French Production Site. Additionally, such cost-saving and restructuring measures agreed between the Company and the representative bodies of the affected French employees may only be implemented following the approval by the French labor authorities.

The Company will inform on the results of the special consultation and negotiation procedure and the impact on the Semperit Group's financials, as relevant.

Contact:
Martina Büchele
Group Communications Manager
+43 676 8715 8621
martina.buechele@semperitgroup.com

Stefan Marin
Head of Investor Relations
+43 676 8715 8210
stefan.marin@semperitgroup.com

www.semperitgroup.com
www.facebook.com/SemperitAGHolding
https://twitter.com/semperitgroup

About Semperit
The publicly listed company Semperit AG Holding is an internationally-oriented group that develops, produces, and sells in more than 100 countries highly specialised rubber products for the medical and industrial sectors: examination and surgical gloves, hydraulic and industrial hoses, conveyor belts, escalator handrails, construction profiles, cable car rings, and products for railway superstructures. The headquarters of this long-standing Austrian company, which was founded in 1824, are located in Vienna. The Semperit Group employs around 7,000 people worldwide, including close to 3,900 in Asia and more than 800 in Austria (Vienna and production site in Wimpassing, Lower Austria). The Group has 22 manufacturing facilities worldwide and numerous sales offices in Europe, Asia, Australia and America. In 2016 the group generated revenue of EUR 852 million and an EBITDA of EUR 78 million.