KHD informed of arbitration award

Cologne, February 12, 2016 – KHD Humboldt Wedag Interational AG (KHD), Cologne, was informed of an award from a Portuguese arbitration court. In this award KHD and its subsidiary Humboldt Wedag, Inc. (HW Inc.), Norcross, Georgia, USA, are jointly ordered to pay damages to a customer in South America. HW Inc.’s arbitration claim for disbursement of outstanding payments, reimbursement for a called bank guarantee, as well as additional compensation (for damages) was denied. The wording and exact impact of the arbitration award are still to be analyzed in detail. Nevertheless, KHD already assessed that the arbitration award is expected to lead to expenses for the KHD Group of approx. € 15 million in the 2015 financial year.

KHD Humboldt Wedag International AG’s CEO, Johan Cnossen, commented on the arbitration award: “This ruling does not reflect our own or our legal counsel’s expectations in any way. We believe that it is grossly incorrect and will exhaust all promising possibilities for success in proceeding against this judgement.”

Reflection of this arbitration award in KHD Group’s financial statements will not have an impact on the forecast result for the 2015 financial year as adequate provisions have already been set up.

KHD Group

KHD is a global leader for providing equipment and services to cement producers with over 150 years of experience in the cement industry. Process engineering and project management are among the core competencies of the technology-focused group. KHD offers a wide spectrum of products and services for the cement industry and is a leader in environmentally friendly and energy-efficient products for the grinding and pyro processing sections of the plants. The holding company KHD Humboldt Wedag International AG, based in Cologne, Germany, coordinates its internationally operating subsidiaries. The group employs more than 750 employees worldwide, including customer service centers in growing markets like India, Russia and the Asia Pacific region. KHD Humboldt Wedag International AG (ISIN: DE0006578008, WKN: 657800) is listed on the Frankfurt stock exchange (General Standard). More information: www.khd.com.

Additional Information

ISIN: DE0006578008
Securities identification number (WKN): 657800
Market segment: Regulated Market (General Standard) of the Frankfurt Stock Exchange

KHD Humboldt Wedag International AG
Colonia-Allee 3
51067 Cologne, Germany

Contact

KHD Humboldt Wedag International AG
Michael Nielsen
Investor Relations

Tel.: +49 (0)221 – 6504-1500
E-Mail: michael.nielsen@khd.com
Website: www.khd.com

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