INDUS announces non-cash write-downs on goodwill

- Key financial targets will continue to be met

- Operating forecast remains unchanged

Bergisch Gladbach, 20 November 2018 - In the fourth quarter of 2018, INDUS Holding AG will post non-cash write-downs on goodwill in the amount of EUR 16.2 million in the consolidated financial statements. EUR 9.5 million thereof will be attributable to the Automotive Technology segment, while the Metals Technology segment will account for EUR 6.7 million. These result from the current outlook of the units affected by the write-downs, which became apparent during the current planning process and the subsequent annual impairment tests.

In the Automotive Technology segment, the earnings prospects of an automotive series production supplier are burdened by the extreme pressure on margins in the industry as well as increasingly volatile sales expectations due to the switch to e-mobility. On a global scale, the expected labor cost increases, especially at the German locations, will also have a negative effect on earnings. The write-down on goodwill in the Metals Technology segment is mainly attributable to the ongoing repositioning in Switzerland and the resulting lower margin expectations.

In spite of these impairments, the targets for key financial indicators of the Group will be met: the Board of Management continues to expect an equity ratio of over 40% and a ratio of net debt to EBITDA of between 2.0 and 2.5.

The operating forecast published in the report on the third quarter of 2018 also remains unchanged. The Board of Management continues to project operating earnings before interest and taxes (EBIT) before impairment at the lower end of between EUR 154 million and EUR 160 million. Taking the write-downs on goodwill into account, earnings before interest and taxes of between EUR 138 million and EUR 144 million are expected.

Dr. Johannes Schmidt, Chairman of the Board of Management of INDUS: "Our portfolio is diversified and strong. We are optimistic for 2019 and are confident that our financial leeway will continue to permit an ambitious investment program, further acquisitions and an attractive dividend."

Contact:
Nina Wolf & Julia Pschribülla
Corporate Communications & Investor Relations

INDUS Holding AG
Kölner Straße 32
51429 Bergisch Gladbach
Germany

Tel +49 (0) 022 04 / 40 00-73
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