METAIR INVESTMENTS LIMITED - Resignation of chief executive officer, operational update and European Commissions statement of objections

Resignation of chief executive officer, operational update and European Commission’s statement of objections

METAIR INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1948/031013/06
JSE and A2X Share code: MTA
ISIN: ZAE000090692
("Metair" or the "Company" or the "Group")

RESIGNATION OF CHIEF EXECUTIVE OFFICER, OPERATIONAL UPDATE AND EUROPEAN COMMISSION'S STATEMENT OF OBJECTIONS

Resignation of Chief Executive Officer

Shareholders of Metair ("Shareholders") are hereby advised that, due to health reasons,
Mr Sjoerd Douwenga has made the difficult decision to resign as Chief Executive Officer ("CEO") and
executive director of Metair with effect from Wednesday, 31 January 2024.

Mr Douwenga was first appointed to the board of directors of Metair ("Board") in 2014, and has served the
organisation with dedication, first as Chief Financial Officer and most recently as CEO. The Board is grateful
for his meaningful contribution during his tenure.

The Board is understanding of Mr Douwenga's decision and wishes him all the best in his future endeavours.

The Board would like to assure all stakeholders that the Metair leadership team is stable, experienced, and
skilled. A recruitment process to identify Mr Douwenga's successor has already commenced, and the Board
has put a plan in place to ensure leadership continuity during the transition. In this regard, Mr Douwenga
will remain available to Metair until 31 March 2024 to ensure an orderly handover.

Operational update – Ford Project

In line with the commitment made to update the market on the status of the Ford Project in South Africa, a
major driver of growth for the Automotive Components Vertical, Shareholders are advised that the Ford
Project volumes are progressing in line with expectations and that the Group's investee companies involved
in this project continue to perform according to expectations.

More specifically, as it relates to the Group's associate Hesto Harnesses ("Hesto"), management is pleased
to advise that commercial negotiations have progressed positively. A commercial price adjustment,
including cash compensation effective from July 2023 to compensate for, amongst others, the significant
increase in product design complexities introduced during the ramp-up phase, is in final approval stages
with the customer. This proposed adjustment is expected to result in a meaningful uplift in the revenues and
operating profit to be generated by Hesto over the remaining model life.

Hesto has taken significant steps to enhance efficiencies and reduce costs internally. Metair, Hesto's
technical partner and customer, remains committed and is actively working closely to ensure the long-term
success of this project and sustainability of Hesto to the benefit of all parties. To support the
Hesto management team, Mr Theo Loock has been appointed as a consultant to provide operational and
strategic guidance to Hesto until the end of March 2024.

European Commission's Statement of Objections

Shareholders are advised that on Thursday, 30 November 2023, Metair and its subsidiary in Romania,
Rombat S.A. ("Rombat"), received an advance copy of a Statement of Objections ("Statement") from the
European Commission ("Commission").

The Statement, which has been circulated to several manufacturers of automotive lead-acid starter batteries
("Manufacturers"), expresses the Commission's concerns, in its capacity as the main European Union
("EU") anti-trust regulator, that Manufacturers (including Rombat) may have potentially violated EU anti-trust
rules in the field of automotive lead-acid starter batteries between 2004 and 2017.

Rombat is currently considering the Statement in detail and, in terms of the EU's Competition Law
procedures, is required to provide a response within 2 months (this deadline can be extended). In line with
the strict confidentiality obligations, Rombat is prohibited from disclosing any further information at this
stage.

For the avoidance of doubt, the Statement does not constitute a definitive ruling by the Commission and a
final determination will only be made following receipt and assessment by the Commission of Rombat's
submissions.

Rombat (as with all Metair Group companies) remains committed to conducting its business in full
compliance with European law.

The information contained in this announcement is the responsibility of the directors of Metair and does not
constitute an earnings forecast. Such information has not been audited, reviewed, or reported on by the
Group's external auditors.


Johannesburg
6 December 2023

Sponsor
One Capital

Date: 06-12-2023 08:00:00
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