Metall Zug Group: Impact of the COVID-19 pandemic. Listing of V-ZUG Holding AG on June 25, 2020. Mittwoch, 17. Juni 2020 - 06:40

Press release dated June 17, 2020

Zug, June 17, 2020 – The consequences of the COVID-19 pandemic are also being felt in the Metall Zug Group's market environment. The Medical Devices, Wire Processing and Infection Control Business Units in particular reported lower order intakes. Metall Zug has taken steps to lessen the negative effects, but continues to carry out key strategic projects as planned. Scheduled for spin-off, the V-ZUG Group has so far been less significantly affected by the impact of the COVID-19 pandemic.

The shares of V-ZUG Holding AG will be traded on SIX Swiss Exchange from June 25, 2020. In connection with the listing of V-ZUG Holding AG, an Information Memorandum (in German only) containing extensive information on the V-ZUG Group is available.

The economic fallout of the COVID-19 pandemic, including the containment measures taken by the authorities and the private sector, has also impacted the Metall Zug Group, leading to year-on-year decreases in sales and order intakes in the Medical Devices, Wire Processing and Infection Control Business Units in particular. The ongoing tense situation in the automotive industry is placing an additional burden on the Wire Processing Business Unit. In April 2020, the Medical Devices Business Unit fell victim to a cyber attack in the US, which resulted in an intragroup payment being transferred to a false account. Investigations are underway to identify the culprits, but there is little hope of success. As things stand, the damage is expected to amount to approximately CHF 2.5 million.

Scheduled for spin-off, the V-ZUG Group has so far been less significantly affected by the impact of the COVID-19 pandemic. The appropriate precautions put in place are hampering manufacturing productivity and prevented sales-boosting measures such as the advisory services provided at the ZUGORAMA stores or to customers at home. On the other hand, work to remedy previously identified internal problems (ERP, delivery reliability) proceeded to plan. While the progress made in this area and the impact of COVID-19 are presently balancing each other out, it is impossible to estimate the further medium to long-term consequences of the pandemic.

Metall Zug does not expect the situation to ease any time soon, and short-term developments are difficult to gauge. The company has taken steps to lessen the negative effects of the current economic scenario. Thanks to its encouraging liquidity position, however, Metall Zug is continuing to carry out key strategic projects as planned.

Part of the Metall Zug Group, V-ZUG Holding AG is to be spun off from Metall Zug, and listed in the Swiss Reporting Standard of SIX Swiss Exchange Zug as scheduled on June 25, 2020 (securities number 54 248 374, ISIN CH0542483745, ticker symbol VZUG). Under this spin-off via a dividend in kind, each type A Metall Zug share confers entitlement to 1 V-ZUG Holding AG registered share and each type B Metall Zug share confers entitlement to 10 V-ZUG Holding AG registered shares. The cut-off date for receipt of the dividend in kind is June 24, 2020, after close of trading. The registered shares of V-ZUG Holding AG will be traded on SIX Swiss Exchange from June 25, 2020. In connection with this listing, an Information Memorandum (in German only) containing extensive information on the V-ZUG Group is available at https://www.metallzug.ch/en/investoren/spin-off and at https://www.vzug.com/ch/en/spin-off-and-listing.

Key dates

June 24, 2020 (after close of trading) Cut-off date for entitlement to the allocation of V-ZUG shares

June 25, 2020 First trading day for Metall Zug shares ex dividend in kind

June 25, 2020 Listing and first day of trading of V-ZUG registered shares on SIX

Information on V-ZUG

As a subscriber of ad hoc information about Metall Zug AG, you will also receive ad hoc information about V-ZUG Holding AG from June 25, 2020. If you no longer wish to receive ad hoc information about Metall Zug AG or V-ZUG Holding AG, you can unsubscribe at any time (see link at the end if this mail). The corresponding ad hoc information and press releases from V-ZUG can be found at https://www.vzug.com/ch/en/media

About the Metall Zug Group

Metall Zug is a group of industrial companies headquartered in Zug. The Group has around 5,000 employees and comprises six Business Units:

• Household Appliances (V-ZUG Holding AG, V-ZUG AG, SIBIRGroup AG and other subsidiaries)
• Infection Control (Belimed Group)
• Medical Devices (Haag-Streit Group)
• Wire Processing (Schleuniger Group)
• Others (Life Science Solutions (Belimed Life Science AG, Belimed Life Science d.o.o.), Gehrig Group AG and Corporate)
• Technology Cluster & Infra (Tech Cluster Zug AG, Urban Assets Zug AG)

The holding company Metall Zug AG is listed in the Swiss Reporting Standard of SIX Swiss Exchange, Zurich (type B registered shares, securities number 3982108, ticker symbol METN).

Metall Zug AG processes personal data in accordance with its privacy statement available under: https://www.metallzug.ch/en/datenschutzerklaerung.

Further information

Daniel Keist Christof Gassner

Chief Financial Officer Head of Corporate Communications & IR

Phone: + 41 58 768 60 50 Phone: + 41 58 768 60 50

The press release is available at https://www.metallzug.ch/en/medien/medienmitteilungen and the Shareholder Information Brochure (in German only) at https://www.metallzug.ch/en/investoren/spin-off.