DGAP-Adhoc

Leoni AG: Leoni strengthens its market position with a joint venture in China and adjusts 2016 forecast

Leoni AG / Key word(s): Joint Venture/Forecast

18.09.2015 18:32

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Leoni strengthens its market position with a joint venture in China and
adjusts 2016 forecast

Nuremberg, 18 September 2015 - Nuremberg-based Leoni AG (ISIN DE 0005408884
/ WKN 540888) has agreed a joint venture with China's Beijing Hainachuan
Automotive Parts Co Ltd (BHAP), a subsidiary of state-owned Beijing
Automotive Industry Corporation (BAIC). The contracts were signed today.
The Chinese State-owned Assets Supervision and Administration Commission
(SASAC) approved the joint venture. It provides that Leoni will sell 50
percent of the shares in its wiring systems plant in Langfang to BHAP. This
plant has to date exclusively been making cable harnesses for the car
ranges of Beijing Benz Automotive Co Ltd (BBAC), the joint venture between
Daimler AG and its Chinese partner BAIC.

Its equal joint venture in China will give Leoni the opportunity to gain
new orders from BBAC and other carmakers. The joint venture will be a key
element for Leoni with respect to expanding its business in Asia
disproportionately strongly in line with its strategy of profitable growth.
All of Leoni's other activities in China are unaffected; they will continue
to exist outside the new joint venture and will likewise be developed
further.

Based on the IFRS accounting principles, the joint venture will be
accounted for by the equity method in the consolidated financial statements
of Leoni AG. There will be no notable effects on sales or operating profit
during the current financial year. It will, on the other hand, mean
consolidated sales of approx. EUR 4.8 billion in fiscal 2016 rather than
the EUR 5 billion forecast previously. The target for a 7 percent EBIT
margin remains unchanged. Long-term, the joint venture will contribute to
further improvement of the Leoni Group's position in the Chinese market.


18.09.2015 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: Leoni AG
Marienstraße 7
90402 Nürnberg
Germany
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]
Internet: www.leoni.com
ISIN: DE0005408884
WKN: 540888
Indices: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard), Munich;
Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg,
Stuttgart

End of Announcement DGAP News-Service

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