PKC Group Oyj - Company Announcement

PKC Group takes the next step in developing its Electronics business

PKC Group Plc         Company Announcement     3 May 2016         9.00 am





PKC Group takes the next step in developing its Electronics business



PKC has signed an agreement to start negotiations on creating a joint venture
(JV) with a company specialized on electronics manufacturing. The company has
multiple manufacturing locations in Asian countries. The purpose of this
agreement is to combine both companies’ electronics businesses and operations. 



The contract party has long history of serving multi-national corporations
especially in medical device segment. PKC’s Electronics business has proven
track record of serving customers in industrial, telecommunication and medical
device segments. 



Complimentary knowhow of the parties creates solid foundation for the future
JV. The contract party has strong capabilities in manufacturing whereas PKC’s
Electronics business has excellent engineering knowhow. 



PKC Group CEO Matti Hyytiäinen: We are glad to have this opportunity to further
develop our Electronics business. This new entity will have much better ability
to serve its customers with broader offering and presence in Asia and Europe.
The bigger size will also bring improved competiveness which enables serving
customers growing needs. PKC will remain as a long term shareholder in the
entity but our partner will have the leading role and majority of the shares.
We are confident that this arrangement will be positive to customers, employees
and shareholders. 



The establishment of the joint venture is subject to e.g. negotiating the
definitive agreements and authority approvals. The finalisation is targeted to
take place in the first quarter of year 2017. As of January-March 2016 interim
statement PKC’s Electronics business will be classified as a non-current asset
held for sale and reported as discontinued operations. In the future PKC Group
will have only one business segment that also includes the Group functions and
other items. The classification will have an impact on PKC’s outlook on revenue
and comparable EBITDA for the year 2016. PKC will update its outlook for 2016
in January-March 2016 interim statement which is published on 4 May, 2016. 





PKC Group Plc

Board of Directors



Matti Hyytiäinen

President & CEO



For additional information.

Matti Hyytiäinen, President & CEO, PKC Group Plc, tel. +358 400 710968





Distribution

Nasdaq Helsinki

Main media

www.pkcgroup.com



PKC Group is a global partner, designing, manufacturing and integrating
electrical distribution systems, electronics and related architecture
components for the commercial vehicle industry, rolling stock manufacturers and
other selected segments. The Group has production facilities in Brazil, China,
Estonia, Finland, Germany, Lithuania, Mexico, Poland, Russia, Serbia and the
USA. The Group's revenue in 2015 totalled EUR 908.0 million. PKC Group Plc is
listed on Nasdaq Helsinki.