26 November 2013

Judgement published in relation to Kendrion's appeal to the court of justice against the fine imposed by the European Commission

On 16 November 2011, the General Court of the European Union in Luxembourg delivered its judgement in the case brought by Kendrion N.V. against the fine imposed on 30 November 2005 by the European Commission in the amount of EUR 34 million (excluding interest) for infringement of Article 81 paragraph 1 of the EC Treaty by its former subsidiary Fardem Packaging B.V. established in Edam, the Netherlands (case number T-54/06). At that time the Court ruled that the fine was to be upheld in full. Kendrion N.V. decided in January 2012 to lodge an appeal with the Court of Justice of the European Union (case number C-50/12). The opinion of Advocate General Sharpston on the appeal was published on 30 May 2013.

The final judgement of the Court of Justice has been published today. The Court of Justice ruled, fully in line with the advice of the Advocate General, that the fine for Kendrion in the amount of EUR 34 million should be upheld. Furthermore, the Court of Justice is of the opinion that the proceedings at the General Court have taken an inordinately long time and that Kendrion has the possibility, if desired, to instigate a separate claim for damages. The Court of Justice did not reduce the fine itself, as requested by Kendrion.

Kendrion will of course further analyse the possibility to claim damages and may take subsequent steps following the in-depth analysis of the complete judgement of the Court of Justice.

Kendrion N.V. issued a bank guarantee to the European Commission at the start of the proceedings with the General Court. Following the judgement by the Court on 16 November 2011, Kendrion has already made full provisions for the fine and interest. The judgement of the Court of Justice as such will not have any significant consequences for Kendrion's operational activities.

Piet Veenema, CEO of Kendrion:

"Although the judgement was not unexpected after the advice of the Advocate General, we are disappointed with this outcome of this legal procedure. At the same time, we are glad that this procedure has come to an end now and we can fully focus on the execution of our business strategy."

Profile Kendrion N.V.

Kendrion N.V., a solution provider, develops, manufactures and markets innovative high-quality electromagnetic systems and components for customers all over the world. Kendrion's operations are carried out by two divisions with in total seven business units focused on specific market segments, namely in the Division Industrial the business units Industrial Magnetic Systems, Industrial Control Systems and Industrial Drive Systems, and in the Division Automotive the business units Passenger Car Systems, Automotive Control Systems, Commercial Vehicle Systems and Heavy Duty Systems.

Kendrion has leading positions in a number of business-to-business niche markets. Germany is Kendrion's main market, although other countries are becoming increasingly important.

Kendrion's activities

Kendrion develops advanced electromagnetic and mechatronic solutions for industrial applications. These are used by customers all over the world in systems such as lifts, door-locking systems, industrial robots, medical equipment, electrical switchbox systems, diesel and gasoline engines, air-conditioning installations, motor cooling systems and beverage dispensers. Kendrion's key customers include a.o. Bosch, Continental, Daimler, Delphi, Eaton, Evobus, Hyundai, Siemens, Volkswagen and Yutong.

Kendrion's shares are listed on NYSE Euronext's Amsterdam market.

Zeist, 26 November 2013

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