Sustainability-oriented financing

Press Release Jun 19, 2019

Bietigheim-Bissingen, June 19, 2019 – Dürr AG is breaking new ground in corporate funding: On June 19, the mechanical and plant engineering firm issued a Sustainability Schuldschein in the amount of € 200 million. What makes this issue so special is that the coupon is linked to the Dürr Group’s sustainability rating. Dürr AG is the world’s first company to pursue this form of sustainability-oriented funding in a Schuldschein issue. Previously, it had only been used sporadically with loans. The average coupon, which was oversubscribed several times, stands at 0.84 %. That allows the Group to fund itself less expensively than before.

The total amount of € 200 million is divided into various tranches with maturities of five, six, eight and ten years, with the proceeds scheduled to accrue to Dürr AG in July. In this way, the Group will be able to reinforce its liquidity and fund its operations on a long-term basis. In addition, the Sustainability Schuldschein will be used as early follow-up funding for the € 300 million corporate bond with a coupon of 2.9 % that expires in 2021.

By adopting this sustainability approach, Dürr AG has specifically targeted investors who attach importance to both economic performance and sustainable business activity. Thus, the coupon rises or falls depending on whether the Dürr Group’s sustainability rating improves or deteriorates. Calculated by rating agency EcoVadis, the rating factors in ecological indicators such as CO2 emissions and water consumption, while also taking account of such aspects as fair working relations and conditions along the supply chain.

Carlo Crosetto, CFO of Dürr AG: “Our Sustainability Schuldschein combines attractive conditions with an innovative, sustainability-oriented approach. To this end, we have taken advantage of the favorable interest rate environment and secured our corporate funding on a long-term basis. We are convinced that sustainable business activity will secure the Company’s long-term business success.”

The transaction was arranged and structured by ING and LBBW. Parts of the Sustainability Schuldschein were subscribed via the innovative Debtvision digital platform. Dürr was advised by ING on the selection of the sustainability rating agency. Reflecting the strong interest on the part of German and international banks, the order book was oversubscribed several times. Dürr AG was advised by Freshfields Bruckhaus Deringer on legal matters.

Press photos

Carlo Crosetto portrait — **Carlo Crosetto**
CFO

About Dürr

The Dürr Group is one of the world's leading mechanical and plant engineering firms with extensive expertise in automation and digitization/Industry 4.0. Its products, systems and services enable highly efficient manufacturing processes in different industries. The Dürr Group supplies sectors like the automotive industry, mechanical engineering, chemical, pharmaceutical and woodworking industries. It generated sales of € 3.87 billion in 2018. In October 2018, the Dürr Group acquired the industrial environmental technology business of US-based company Babcock & Wilcox, comprising the MEGTEC and Universal brands. Since then, it has over 16,400 employees and 108 business locations in 32 countries. The Group operates in the market with five divisions:

Paint and Final Assembly Systems: paint shops and final assembly systems for the automotive industry
Application Technology: robot technologies for the automated application of paint, sealants and adhesives
Clean Technology Systems: air pollution control, noise abatement systems and battery coating lines
Measuring and Process Systems: balancing equipment as well as assembly, testing and filling technology
Woodworking Machinery and Systems: machinery and equipment for the woodworking industry

Disclaimer

This publication has been prepared independently by Dürr AG/Dürr group (“Dürr”). It may contain statements which address such key issues as strategy, future financial results, events, competitive positions and product developments. Such forward-looking statements are subject to a number of risks, uncertainties and other factors, including, but not limited to those described in Dürr's disclosures, in particular in the chapter “Risks” in Dürr's annual report. Should one or more of these risks, uncertainties and other factors materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performances or achievements of Dürr may vary materially from those described in the relevant forward-looking statements. These statements may be identified by words such as “expect,” “want,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project” or words of similar meaning. Dürr neither intends, nor assumes any obligation, to update or revise its forward-looking statements regularly in light of developments which differ from those anticipated. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies.

Our financial reports, presentations, press releases and ad-hoc releases may include alternative financial metrics. These metrics are not defined in the IFRS (International Financial Reporting Standards). Dürr's net assets, financial position and results of operations should not be assessed solely on the basis of these alternative financial metrics. Under no circumstances do they replace the performance indicators presented in the consolidated financial statements and calculated in accordance with the IFRS. The calculation of alternative financial metrics may vary from company to company despite the use of the same terminology. Further information regarding the alternative financial metrics used at Dürr can be found in our financial glossary.