SHW AG: Pierer Industrie AG adheres to takeover price of € 35 per share

THIS ANNOUNCEMENT IS NOT INTENDED FOR PUBLICATION OR DISTRIBUTION IN THE USA, CANADA, JAPAN OR AUSTRALIA

• Offer price is at the upper end of analyst estimates

• Diesel scandal increasingly burdens automotive supply industry

• Continuation of constructive dialogue with Management and Supervisory Boards of SHW

Offer price is at the upper end of analyst estimates

Pierer Industrie AG adheres to the takeover price of EUR 35.- per share of SHW. The offer price is not only over 10% above the average stock market price of the past months prior to the announcement of the intention to launch the offer, but also at the upper end of the valuation by financial analysts, which was published on Monday in a joint statement of the Management and Supervisory Boards of SHW AG. These valuations are between EUR 28 and EUR 35 per share and were made prior to the current further escalation of the diesel scandal.

Diesel scandal increasingly burdens automotive supply industry

The effects of the diesel scandal are still not fully assessable for the automotive industry and its suppliers. SHW can also be affected by this, as the Volkswagen Group is its biggest customer. The quota of diesel components of SHW is approximately at 25%. The managing of the diesel crisis that will face the supply industry within the next years, will also be cost intensive and challenging for SHW.  Despite this changed initial situation, Pierer Industrie AG adheres to the takeover price of EUR 35 per share.

Continuation of constructive dialogue with Management and Supervisory Boards of SHW

Pierer Industrie AG plans to continue and intensify the positive dialogue with the Management and Supervisory Boards of SHW to establish potentials and synergies.

About the Pierer Group:

The Pierer Group is a leading European vehicle group with a focus on the global motorcycle segment and the automotive high-tech component sector. The Group currently employs more than 5,200 people worldwide with a group turnover of more than EUR 1.5 billion.

Additional Information (Disclaimer)

This announcement is for information purposes only and does not constitute an offer to buy or an invitation to sell securities. The offer to purchase SHW shares is subject exclusively to the terms and conditions specified by Pierer Industrie AG in the offer document and the amendment to the offer.

This press announcement does not release the respective SHW shareholder from his/her obligation to examine the information contained in the offer document and in the amendment to the offer and – taking into account all available sources of information, all individual circumstances of the shareholder (in particular with regard to the individual tax situation), the applicable statutory provisions for the shareholder and the personal assessment of the future development of the share price of the SHW share – to make his/her own decision about whether or not to accept the takeover offer.

Pierer Industrie AG points out that it is not in a position and is not obliged to verify whether the SHW shareholders comply with all obligations of the individually applicable statutory provisions upon acceptance of the takeover bid. Shareholders of SHW wishing to accept the takeover offer should examine whether the acceptance of the takeover offer is compatible with legal obligations arising out of their personal circumstances (e.g., sales restrictions). Furthermore, Pierer Industrie AG recommends that all shareholders subject to the laws of a foreign jurisdiction may obtain information about and comply with the applicable laws. PIAG assumes no liability for the decision of a shareholder and recommends that each shareholder of SHW obtains the necessary individual tax and legal advice, if necessary.