SHW AG: Release according to Article 26, Section 1 of the WpHG [the German Securities Trading Act] with the objective of Europe-wide distribution

PricewaterhouseCoopers Legal Aktiengesellschaft Rechtsanwaltsgesellschaft
Bernhard-Wicki-Strasse 8, 80636 Munich

Per Fax: 07361 502-851
SHW AG
Mr. Schickling
Wilhelmstr. 67
73433 Aalen

26 October 2017
 

Notification pursuant to Section 27a (1) of the German Securities Trading Act (Wertpapierhandelsgesetz - WpHG)

Dear Mr. Schickling,

We represent SHW Beteiligungs GmbH, Pierer Industrie AG, Pierer Konzerngesellschaft mbH and Mr. Stefan Pierer (Dip.-Ing). (hereinafter referred to as the 'Notifiers').

With reference to the voting rights notification (Group notification) pursuant to Sections 21 and 22 WpHG from Mr. Stefan Pierer (Dipl.-Ing.) dated 19 October 2017 we hereby notify you on behalf of the Notifiers and with full power of attorney of the following in accordance with Section 27a (1) WpHG:

1. The investment serves strategic objectives.

2. Depending on the development of the share price and the operating development of SHW AG, SHW Beteiligungs GmbH intends to obtain further voting rights in SHW AG by acquisition or in any other way.

3. The Notifiers seek representation on the Supervisory Board of SHW AG that is commensurate to their shareholding. At present, no influence is sought on the composition of the Management Board of SHW AG. However, if needed, the Notifiers retain the right to influence the composition of the Management Board of SHW AG via the competent bodies.

4. The Notifiers do not seek any significant change in the capital structure of SHW AG, in particular regarding the ratio of equity and debt financing. A reduction of the payout ratio will be considered.

5. The acquisition of the voting rights by SHW Beteiligungs GmbH was financed from own funds and debt financing.
 

Yours faithfully,

PricewaterhouseCoopers Legal
Aktiengesellschaft
Rechtsanwaltsgesellschaft

Dr. Thomas Scharpf
Rechtsanwalt (Attorney at law (Germany))