KENDRION : New credit facility arrangement for Kendrion

15 August 2014

Kendrion has reached agreement on a new EUR 150 million revolving credit facility to
refinance the majority of its existing finance arrangements. The agreement has been entered into with ING Bank, Deutsche Bank and BNP Paribas each equally participating.

The new facility is unsecured and committed for a period of five years, with no repayments before the final maturity. The new arrangement will provide Kendrion with sufficient flexibility to
achieve its ambitious growth objectives. The arrangement includes an (accordion) option to increase the facility by a maximum of EUR 75 million and the possibility to attract additional alternative sources of debt funding in the future. The facility may be utilised for general corporate purposes, including the financing of acquisitions. Financial covenants agreed are an interest rate cover of more than 4.0 and a debt cover ratio of less than 3.0. Upon the realisation of an acquisition, the leverage ratio can be temporarily increased to 3.5. At the inception date of the new facility approximately EUR 100 million will be utilised.

Frank Sonnemans, CFO: "We are very pleased with the agreement reached with the banks. This facility gives us the required scope and flexibility to execute our growth strategy in and outside Europe. The performance of Kendrion in combination with the momentum in the market has led to a competitive pricing package which will produce substantial yearly cost reductions. The cost reductions will be realised via lower margins and lower commitment fees payable."

Kendrion N.V., a solution provider, develops, manufactures and markets innovative high-quality electromagnetic and mechatronic 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 and automotive 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, Evobus, Hyundai, Siemens, ThyssenKrupp Bilstein, Volkswagen, Wabco, Yutong and ZF.

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

Zeist, 15 August 2014

The Executive Board