Correction of Errors in KHD’s 2014 Consolidated Financial Statements – after external Audit

Cologne, Germany, March 8, 2016 – As informed in the ad hoc announcement dated June 19, 2015, errors were identified in the measurement of individual projects in the 2014 financial year relating to Humboldt Wedag, Inc., the US subsidiary of KHD Humboldt Wedag International AG (KHD), Cologne. In an ad hoc publication dated August 11, 2015, KHD announced a reduction of earnings before interest and taxes (EBIT) amounting to € 13.7 million and an equity reduction in an amount of € 14.9 million based on a preliminary assessment of the error. In accordance with IAS 8, the error correction was done retrospectively while preparing the Half Year Report 2015.

Following the conclusion of the audit of the 2015 consolidated financial statements there now is evidence that resulted in a lower error, which is to be corrected by restating the comparative amounts for prior periods.

The error from the 2014 financial year has now been corrected retrospectively while preparing the 2015 consolidated financial statements by restating the comparative amounts for the 2014 financial year.

In KHD’s 2015 consolidated financial statements to be published on March 18, 2016, it will be disclosed that in the 2014 financial year revenue was overstated in an amount of € 5.9 million. This results in an equity reduction of € 6.4 million due to currency exchange effects.