Surprise application for protective shield proceedings by euromicron AG

Kölleda, 12 December 2019 - On 11 December 2019, Funkwerk AG unexpectedly learned that the Executive Board of euromicron AG had filed an application for the initiation of protective shield proceedings with the competent local court on the same day. Funkwerk will examine the amount of the necessary write-down of the 15.36 % stake in euromicron AG, which is recognised at €5.8 million in Funkwerk AG's financial assets. The write-down would have a negative impact on the financial result and thus the net profit of Funkwerk AG in the current financial year, but the operating business will not be affected. The forecast for sales and operating profit therefore remains unchanged. Accordingly, the Funkwerk Group expects an increase in sales of around €6 % (2018: €82.7 million) and an EBIT of at least €11 million (2018: €11.4 million) for 2019 as a whole.

The Executive Board of Funkwerk AG was taken completely by surprise and without prior notice when the Executive Board of euromicron AG applied for the opening of protective shield proceedings in self-administration. Funkwerk was also not informed at any time about the talks with a strategic investor unknown to Funkwerk AG mentioned by euromicron in the ad hoc announcement of 10 December 2019 and is not a party to such negotiations. Such non-transparent behaviour by euromicron's Executive Board has destroyed the basis of trust necessary for a strategic partnership.

Funkwerk AG will continue the company's successful development in recent years under its own steam and focus on further dynamic growth in the business fields of train radio, traveller information, video systems and IoT (Internet of Things). As a reliable and stable long-term partner, Funkwerk AG is convinced that it will be able to fulfil its customers' requirements with leading technologies and a high level of customer and service orientation even without euromicron AG.