From the Sector

Based on Article 27 of Regulation 3 on measures to combat the Corona Virus (COVID-19), the Board of Directors of Rieter Holding Ltd. decided that shareholders can exercise their voting rights exclusively by authorizing the independent proxy. Shareholders therefore could not attend the Annual General Meeting in person. The AGM was held on the premises of Rieter Holding Ltd. at the company’s headquarters in Winterthur.

At the Annual General Meeting of Rieter Holding Ltd. on April 15, 2021, the independent proxy represented a total of 2 084 shareholders who hold 63.6% of the share capital.

The shareholders approved the proposal of the Board of Directors not to distribute a dividend in view of the negative business result. In addition, they approved the proposed maximum total amounts of the remuneration of the members of the Board of Directors and of the Group Executive Committee for fiscal year 2022.

The Chairman of the Board, Bernhard Jucker, and the members of the Board of Directors This E. Schneider, Hans-Peter Schwald, Peter Spuhler, Roger Baillod, Carl Illi and Luc Tack were confirmed for an additional one-year term of office. Stefaan Haspeslagh was newly elected to the Board of Directors for a one-year term of office.

Furthermore, This E. Schneider, Hans-Peter Schwald and Bernhard Jucker, the members of the Remuneration Committee who were standing for election, were also each re-elected for a one-year term of office.

Shareholders also adopted all other motions proposed by the Board of Directors, namely the approval of the annual report, the financial statements and the consolidated financial statements for 2020, and formal approval of the actions of the members of the Board of Directors and those of the Group Executive Committee in the year under review.

Outlook Updated
As already communicated at the Results Press Conference on March 9, 2021, Rieter expects the market recovery to continue in 2021. The company expects an order intake exceeding CHF 500 million in the first half of 2021. For the first half of 2021, Rieter still anticipates that sales will be below break-even point. For the full year 2021, Rieter expects an operating profit.

• Michael Pieper is not standing for re-election
• Stefaan Haspeslagh will be proposed for election to the Board of Directors at the Annual General Meeting
• The change is related to the transfer of the shareholding of Artemis Beteiligungen I AG to Picanol Group

Michael Pieper, a member of the Board of Directors of Rieter Holding AG since 2009, has informed Rieter that Artemis Beteiligungen I AG has sold its 11.5% block of shares to the Picanol Group (Picanol NV), Belgium, and that he thus will not stand for re-election at the Annual General Meeting on April 15, 2021.

Michael Pieper has supported and helped to significantly shape the development of Rieter for more than ten years. He joined Rieter as a major shareholder in 2008, and since then has been strongly involved in the strategic realignment of the group.

“On behalf of the Rieter Group, I extend our sincere gratitude to Michael Pieper for his extremely successful and valuable work on the Board of Directors and, above all, for his commitment as a long-term major shareholder,” said Bernhard Jucker, Chairman of the Board of Directors of Rieter Holding AG.

The Board of Directors of Rieter Holding AG today announced its intention to propose Stefaan Haspeslagh for election to the Board of Directors at the Annual General Meeting on April 15, 2021.
Stefaan Haspeslagh (born 1958) holds a Master’s degree in Applied Economics from the University of Antwerp, Belgium. He has been Chairman of the Board of Directors and Chief Financial Officer of the Picanol Group (Picanol NV), Belgium, since 2010. In addition, Stefaan Haspeslagh has also been Chairman of the Board of Directors, Chief Operating Officer and Chief Financial Officer of the Tessenderlo Group NV, Belgium, since 2014. As a director of Cellpack NV, Belgium, he has been in office since 2001.

“Rieter welcomes the new major shareholder, Picanol NV. Luc Tack, majority shareholder and CEO of Picanol, has been a member of the Board of Directors of Rieter for four years. Stefaan Haspeslagh is characterized by broad, international management experience in the textile sector and is very well connected in the industry”, stated Bernhard Jucker, Chairman of the Board of Directors.

All other current members of the Board of Directors will stand for reelection at the Annual General Meeting.

Lectra announces its plan to acquire the entire capital and voting rights of US-based Gerber Technology. A key Industry 4.0 player in the fashion, automotive and furniture industries, Lectra designs smart industrial solutions – software, equipment, data and services – that help brands, manufacturers and retailers develop, produce and market their products.

The acquisition, if and when consummated, would allow Lectra to complement its market position and continue to enhance its offerings based on Industry 4.0 technology that will enable its customers to boost the productivity and profitability of their operations. After the French work council of Lectra is consulted and the binding documentation is signed, completion of the acquisition shall remain subject to merger control clearance and other customary conditions and shall be submitted to Lectra shareholders for approval.

The proposed combination would occur at an opportune time for both companies and their customers. The current uncertain economic climate and unprecedented challenges that fashion, automotive and furniture companies are facing due to the COVID-19 pandemic make it more important than ever for them to transform, digitalize and optimize their operations.

For over 50 years, Gerber Technology has used its proprietary technologies and deep domain expertise to provide integrated software and automated hardware solutions to companies around the world, including over 100 Fortune 500 companies in 134 countries.

The strategic combination of Gerber Technology and Lectra will create a premier advanced technology partner, able to quickly meet changing customer needs and deliver even more value through seamlessly integrated solutions. Together, the two companies will have a large installed base of product development software and automated cutting solutions in operation, with a worldwide presence and a long list of prestigious customers.

Consolidating the two companies’ research and development capabilities will enable the combined company to accelerate development of Industry 4.0 technologies and help its expanded customer base seize the full potential of these innovations.
Integrating the technology of the two companies will endow them with the resources to anticipate and address rapidly changing market conditions.

Key transaction terms

Under the proposed acquisition, Lectra would acquire all outstanding shares of Gerber Technology on a cash-free debt-free basis for an upfront payment of 175 million euros – through a combination of cash and debt – plus 5 million newly issued Lectra shares to AIPCF VI LG Funding, LP (“AIPCF VI LG”), an affiliate of American Industrial Partners that is Gerber Technology’s sole shareholder. This would represent a total amount of about 300 million euros based on Lectra’s closing share price on February 5, 2021. No contingent consideration is contemplated.

Gerber Technology’s revenues was 165 million euros in 2020.

Thanks to the strong value creation deriving from significant synergies, Lectra expects the transaction to be accretive for shareholders from 2022.

Upon closing, Daniel Harari would own c. 14.6% of the Lectra shares and AIPCF VI LG would own c. 13.3%.

Lectra’s Board of Directors would welcome a director representing AIPCF VI LG.

Daniel Harari would continue to be the Chairman and Chief Executive Officer of Lectra. Gerber Technology Chief Executive Officer, Mohit Uberoi, would assume special advisor to Daniel Harari role until end-2021.

Lectra’s shareholders would be invited to vote on the issuance of the 5 million new Lectra shares reserved to AIPCF VI LG at a dedicated Extraordinary Shareholders’ Meeting which is currently expected to be held on April 30, 2021. A report containing additional information will be made available to the shareholders prior to the Extraordinary Shareholders’ Meeting.

Lazard is acting as exclusive financial advisor to Lectra, and Latham & Watkins as legal counsel to Lectra.

Goldman Sachs is acting as exclusive financial advisor to AIPCF VI LG, and Ropes & Gray LLP, Baker Botts LLP and Gide Loyrette Nouel A.A.R.P.I. as legal counsel to AIPCF VI LG.

2020 results, update on the 2020-2022 strategic roadmap and guidance for the coming years will be disclosed on February 10, 2021.

Lectra management will discuss the transaction, provide forward-looking guidance for the combined company upon closing of the transaction and answer questions from the financial community during the February 11, 2021 webcast Analyst Conference meeting in French starting at 8:30 am (CET - Paris).

Reflecting the pandemic-related drop in worldwide vehicle production, Autoneum’s revenue in local currencies fell by –18.7% in 2020, although the second half of the year saw a significant market recovery. Group revenue in Swiss francs fell by –24.2% year-on-year to CHF 1 740.6 million. For the full year 2020, the EBIT margin will be around 1.5% and the free cash flow slightly over CHF 100 million.
At the Annual General Meeting on March 25, 2021, the Board of Directors will propose Liane Hirner and Oliver Streuli for election to the Board of Directors of Autoneum Holding. Peter Spuhler will not stand for re-election.

At 74.5 million, the number of light vehicles produced globally in 2020 was down –16.2% compared to the previous year, where around 89 million vehicles were manufactured. Autoneum’s revenue in local currencies decreased by –18.7% in 2020, pretty much in line with the negative market dynamics. The somewhat stronger decline of revenue compared to the market results from a lower share of Asia in Autoneum's total revenue. Impacted by the appreciation of the Swiss franc against the most important currencies for Autoneum, the consolidated revenue dropped in 2020 by –24.2% to CHF 1 740.6 million. The heterogeneous development of the first and second half of the year was characteristic for the pandemic-driven automotive year 2020. Worldwide lockdowns and production stoppages at vehicle manufacturers led to a market slump in the first six months and a corresponding loss in revenue for Autoneum. Thanks to the subsequent market recovery and catch-up effects in the second half of the year, revenue improved considerably compared to the first half of the year.

Revenue development in Asia and SAMEA region significantly better than market
While revenues in local currencies of the highest-volume Business Groups Europe and North America decreased by –25.6% and –19.3% respectively, reflecting the regional, pandemic-driven market development (Europe: –22.9%; North America: –20.1%), Business Group Asia almost held its prior-year level with an organic decline of only –2.1% in 2020 thanks to the strong upturn in automobile production in China in the second half of the year and despite the fact that the number of vehicles produced in Asia fell by –11.4%.*

Personnel changes to the Board of Directors
At the Annual General Meeting on March 25, 2021, the Board of Directors of Autoneum Holding will propose Liane Hirner and Oliver Streuli for election as new members of the Board of Directors.
Liane Hirner has been CFO and member of the Management Board of Vienna Insurance Group, based in Vienna, Austria, since 2018.*

Oliver Streuli, a Swiss national, has been CEO of PCS Holding, based in Frauenfeld (Canton Thurgau), Switzerland, since 2019.*

Peter Spuhler has been a member of the Board of Directors of Autoneum since 2011 and will not stand for re-election at the Annual General Meeting on March 25, 2021.*

*See attached document for further informationen

• All motions approved
• Dividend of CHF 4.50 agreed
• COVID-19

In relation to participation in the Annual General Meeting on April 16, 2020, the Board of Directors of Rieter Holding Ltd. arranged exclusively written or electronic voting and the granting of power of attorney to the independent proxy. In taking this approach, the Board of Directors relied on Article 6a, lit. b of Ordinance 2 of the Swiss Federal Council (Measures to Combat the Coronavirus of March 16, 2020). Physical participation by the shareholders was therefore not possible. The Annual General Meeting was held on the premises of Rieter Holding Ltd. at the company’s headquarters in Winterthur.

At the Annual General Meeting of Rieter Holding Ltd. on April 16, 2020, the independent proxy represented a total of 2 025 shareholders who hold 64.3% of the share capital.

A dividend of CHF 4.50 per share was agreed. The shareholders approved the proposed maximum total amounts of the remuneration of the members of the Board of Directors and of the Group Executive Committee for fiscal year 2021.

The Chairman of the Board, Bernhard Jucker, and the members of the Board of Directors This E. Schneider, Michael Pieper, Hans-Peter Schwald, Peter Spuhler, Roger Baillod, Carl Illi and Luc Tack were confirmed for an additional one-year term of office.
Furthermore, This E. Schneider, Hans-Peter Schwald and Bernhard Jucker, the members of the Remuneration Committee who were standing for election, were also each re-elected for a one-year term of office.

Shareholders also adopted all other motions proposed by the Board of Directors, namely approval of the annual report, the financial statements and the consolidated financial statements for 2019, and formal approval of the actions of the members of the Board of Directors and those of the Group Executive Committee in the year under review. In addition, the authorized capital was extended for a further two years.

COVID-19
At present, it is not possible to predict how the global COVID-19 pandemic will affect Rieter’s sales and earnings in the first and second half of 2020, and thus also for 2020 as a whole.

Rieter therefore refrains from providing an outlook for financial year 2020 and will issue the relevant information as part of the semi-annual report on July 16, 2020.
The company has taken the necessary measures to protect employees and to meet commitments to customers as far as possible.

Thanks to long-standing customer relationships, a focus on innovation, global positioning and the company’s financial stability, Rieter will successfully overcome the challenges.

Net result impacted by operating losses and high impairments in North America

In 2019, Autoneum grew organically by 2.5% and has thereby significantly outperformed the declining market. In Swiss francs, revenue rose slightly to CHF 2 297.4 million. However, as previously communicated, operational inefficiencies in North America and impairments on fixed assets in that region had a particularly strong impact on profitability and led to a net loss of CHF –77.7 million. The Board of Directors therefore proposes that no dividend bedistributed for the 2019 financial year. Based on the new turnaround program launched in North America at the beginning of this year, significant profitability increases are expected for 2020.

2019 was an extremely challenging year for the automobile industry. The continuing weakness of the global economy, ongoing trade disputes and the increasing regulation of mobility impacted vehicle demand negatively. But 2019 was also a year of change for Autoneum internally. An in-depth analysis carried out by the new Group Management in the fall showed a need to reevaluate the Group’s performance over the short- to medium-term. In Business Group North America, the operational and commercial problems have proven more extensive than originally assumed. As a result, the turnaround program launched in spring 2019 was replaced at the beginning of 2020 with a dedicated and far more comprehensive program for the North American sites.

Revenue growth despite a shrinking global market
As a result of weak demand, the number of light vehicles produced worldwide fell again sharply in 2019 compared to the previous year; whereby the decline of almost –6% was much steeper than in 2018. Thanks to numerous production ramp-ups and a favorable model portfolio, Autoneum generated organic revenue growth1 of 2.5%, despite the global market cooling. Revenue consolidated in Swiss francs rose by 0.7% from CHF 2 281.5 million to CHF 2 297.4 million.

Profitability2 impacted by operational inefficiencies and impairments
Operational inefficiencies in North America and impairments on fixed assets in this region were the main reason for the – first-ever – negative net result in 2019. In addition, the sharp drop in automobile production in Europe and China as well as associated lower utilization of production capacities in the affected Business Groups also burdened the Group’s profitability. EBITDA excluding IFRS 16 effects decreased to CHF 126.0 million (2018: CHF 197.2 million), which corresponds to an EBITDA margin of 5.5% (2018: 8.6%). One-time charges from impairments in the amount of CHF –68.0 million had a negative impact on EBIT, reducing it to CHF –32.9 million (2018: CHF 114.1 million). Without these one-time charges, EBIT amounted to CHF 35.0 million. The EBIT margin 1 Change in revenue in local currencies, adjusted for hyperinflation. 2 The figures for the 2019 financial year include IFRS 16 effects. Autoneum Management Ltd . Media Release . March 4, 2020 Page 2/5 excluding impairments was at 1.5% in 2019, and taking those into account the margin decreased to –1.4% (2018: 5.0%).

DOMO Chemicals, a global leading player in engineering nylon materials towards sustainable solutions, today announced its transition plan for the function of Chief Executive Officer. The Board of Directors of DOMO has appointed Yves Bonte to succeed current CEO Alex Segers during February 2020. Mr. Segers has held the CEO position at DOMO since the Company started its chemical activities in 1994 and will continue to play an important role in the transformation of Solvay’s European Performance Polyamide and DOMO into one company. Closing of the acquisition of Solvay’s European performance Polyamide Business by DOMO is expected to take place on January 31st.

Alex Segers commented, “I feel privileged to have been given the opportunity to work with the DOMO team over the past twenty-six years, which has really been an incredible journey. We are now entering the next level for the company by integrating very soon the European Performance Polyamides Business from Solvay. In Yves we have found the ideal person to pass the baton to. We look forward to a seamless transition.”

Gregory De Clerck, Managing Director of Domo Investment Group and Member of the Board of DOMO Chemicals commented, “I would personally like to thank Alex for his leadership in the successful growth and transformation of DOMO from an upstream nylon 6 specialist into a full integrated engineering materials company developing innovative and sustainable solutions in the Polyamide Industry. We are excited to welcome Yves Bonte to DOMO as the new CEO and Chairman of DOMO Chemicals. We believe he is the ideal person to lead the next chapter of the Company’s growth and transformation process. Alex will continue to significantly contribute to the success of new DOMO.”

Yves Bonte joins DOMO from Yara, the leading fertilizer company and a provider of environmental solutions where he held the role of Executive Vice President Industrial recently named New Business since January 2010, and was responsible for a business generating appr. 20% of Yara’s total revenue of 12.9 billion USD. Prior to Yara, he held a variety of business leadership, commercial and operations roles at Lyondell Basel and Exxon Chemicals. Since 2018 Yves is as Board Member of DOMO.

“I have a true passion for innovation and sustainability, and I am thrilled to join DOMO as its next CEO,” Yves Bonte commented. “The Company has established itself as a leader in sustainable polyamide based on its strong technology-driven product portfolio with a solid foundation to further build upon. I believe DOMO is uniquely positioned to support its customers’ manufacturing processes in a cost effective and sustainable manner. The recently announced long-term strategy and planned investment will position DOMO to reach new levels of growth and success.”

Mr. Robert Bélanger, President of the Board of Directors of the CTT Group and President of Belt-Tech Products inc., is pleased to announce the appointment of Mr. Olivier Vermeersch as President/Chief Executive Officer of the CTT Group, one of the Collegial Center for Technology Transfer (CCTT) of the Cégep of Saint-Hyacinthe. Mr. Vermeersch succeeds Mr. Jacek Mlynarek from today. Mr. Mlynarek will remain associated to the CTT Group as an Ambassador and Strategic Advisor and - Research and Development, Partnership and Innovation.

The CTT Group Board of Directors and the entire team would like to thank Mr. Mlynarek for the energy and dedication he has devoted over the last 26 years to the development of the CTT Group, which is now recognized as one of the most important Collegial Center for Technology Transfer in Quebec and Canada. In 2009, Mr. Mlynarek received the Innovation System Builder Award from the Quebec Association for the Development of Research and Innovation.

Mr. Vermeersch is in a familiar territory, since he has been working for the CTT Group from the beginning of his career in 1991. In 2014, he was promoted Vice President - Research and Development and more recently, he was appointed as Executive Vice-President. In 2014, he was awarded the prestigious Excellence Award from the “Fonds de recherche du Québec – Nature et technologies”. Mr. Vermeersch will continue to be Chairholder of the NEXTEX Industrial Chair of St-Hyacinthe College, a Canadian NSERC Level 2 Chair in Innovative Technical Textiles, which brings together many of CTT Group's customers.

The Board of Directors of Autoneum Holding Ltd has appointed Matthias Holzammer, the former, long-term Head of Business Group Europe, as CEO with immediate effect. He is taking over from Martin Hirzel, who will be leaving the Company in agreement with the Board of Directors. Since the existing problems in North America are proving more challenging than expected, the Group's operating result in the second semester of 2019 will not improve, contrary to previous forecasts.

Matthias Holzammer has already demonstrated his operational expertise as the Company’s Head of Business Group Europe, which he successfully restructured from 2012 on and transformed into a highly profitable Business Group. Due to the severe operational and commercial issues in North America, the turnaround and improvement of results will take more time than expected. Matthias Holzammer will devote himself to this task with the highest priority, in order to return the Business Group and the Group back to profitability as quickly as possible. "In view of the current challenges in North America and the volatile global market environment, Matthias Holzammer is the ideal choice to lead the Company as CEO with his industry experience, knowledge of Autoneum and track record in restructuring”, said Hans-Peter Schwald, Chairman of the Board of Directors of Autoneum Holding Ltd.

After an intense dialogue and a series of meetings during the past year between the ZDHC Board of Directors and the GCIRT, an alignment was gained on ZDHC organisational commitments and a mutual understanding of the role of chemical suppliers within the ZDHC Programme. This opens the doors for broader, more active distribution of chemistry expertise and implementation support of textile dye and leather chemical manufacturing industry in the ZDHC Programme.

The Global Chemical Industry Round Table (GCIRT), sent an open letter to ZDHC in May 2018 and is a group of the leading chemical solution providers in the textile and leather industry with the collective aim of driving the industry further to become more sustainable. GCIRT’s signatory’s engagement into the ZDHC Programme will support a faster transformation of the industry by taking complexity out of the supply chain and to find appropriate solutions for the industries’ requirements.

The GCIRT members are: ARCHROMA (Switzerland); CHT Germany GmbH (Germany); Colourtex Industries Private Limited (India); DyStar Singapore Pte Ltd (Singapore); Huntsman Textile Effects (Singapore); KISCO (Korea); Pulcra Chemicals Group (Germany); RUDOLF GmbH (Germany); TANATEX Chemicals B.V. (Netherlands).