Ad hoc Announcement
Munich, March 27, 2020

"Knorr-Bremse suspends guidance for fiscal year 2020"

Munich, March 27, 2020 -Knorr-Bremse AG's guidance for the fiscal 2020, which the company published at its annual press conference on March 11, 2020, was made subject to the reservation that the spread of COVID-19 would have a limited impact. Over the past two weeks, the negative effects of the COVID-19 crisis have gained considerable importance, rendering numerous assumptions obsolete. Among other things, customers and suppliers in many parts of the world have carried out temporary plant closures. According to the current assessment of the Executive Board, it is therefore no longer possible to make a reliable estimate of the further course of business. The guidance for the fiscal year 2020 has thus been suspended. The Executive Board now expects a significant decrease of revenues and EBITDA compared to 2019.

We are responding with an extensive program of measures to ensure the stability of the company in this challenging environment:

In addition to the liquidity of more than EUR 1.8 billion available at the end of 2019 according to preliminary results, Knorr-Bremse will draw on additional credit lines of EUR 0.75 billion. The company is thus increasing its operational scope. At the end of 2019, the company had a net cash position of around EUR 320 million.

In order to stabilize earnings, personnel and other measures are taken which build on the preparations in 2019. They include the possibility of introducing short-time working at individual locations in Germany, comparable measures at the other European locations and a cost program with staff reduction measures in North and South America.

A rapid recovery in China, where Knorr-Bremse's plants have resumed 97% of their operations, shows that with appropriate measures in other markets affected by Covid-19, delivery capacity can be quickly restored to a large extent after possible interruptions.

Despite the current challenges, Knorr-Bremse plans, subject to further developments, to maintain its dividend policy for the previous year (payout ratio of 40 to 50 % of consolidated net income for the year) following the good business performance in 2019 and due to the robust financial situation. The dividend proposal will be announced on April 21, 2020 after approval of the annual financial statements by the Supervisory Board.

Important Information

This release may contain forward-looking statements, estimates, opinions and projections with respect to anticipated future performance of the Company ("forward-looking statements"). These forward-looking statements can be identified by the use of forward-looking terminology, including, but not limited to, the terms "believes," "estimates," "anticipates," "expects," "intends," "may," "will" or "should" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. Forward-looking statements are based on the current views, expectations and assumptions of the management of Knorr-Bremse and involve significant known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Forward-looking statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Any forward-looking statements only speak as at the date of this release. We undertake no obligation, and do not expect to publicly update, or publicly revise, any of the information, forward-looking statements or the conclusions contained herein or to reflect new events or circumstances or to correct any inaccuracies which may become apparent subsequent to the date hereof, whether as a result of new information, future events or otherwise. We accept no liability whatsoever in respect of the achievement of such forward-looking statements and assumptions.