PKC's tax appeal for the business restructuring carried out in 2009 rejected by Finland’s Board of Adjustment

PKC Group Plc     Company Announcement   7 January 2016    8.00 am

PKC's tax appeal for the business restructuring carried out in 2009 rejected by Finland’s Board of Adjustment

PKC Group Plc has received a decision from the Board of Adjustment of the Finnish Tax Authorities, according to which PKC Group Plc would be obliged to pay EUR 8.3 million additional taxes, punitive tax increases and interests in the case concerning the Wiring Systems business restructuring carried out in 2009. The company recorded the sum in the financial year 2014 results.

PKC has issued company announcements on this case on 23 September 2014.

The company and the Finnish tax administration have significantly different views in assessing the nature of the reorganisation and its valuation. PKC Group is of the opinion that it has complied with the tax laws, OECD’s transfer pricing guidelines and tax administration’s guidelines. PKC Group considers the claim to be without foundation and places the issue before the administrative court of Helsinki and apply for a rectification of the Board of Adjustment’s ruling and continuation of interdiction of enforcement of the tax imposed.

PKC Group Plc

Board of Directors

Matti Hyytiäinen

President & CEO

For additional information, contact:

Juha Torniainen, CFO, PKC Group Plc, tel. +358 (0)40 570 8871

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 2014 totalled EUR 829.5 million. PKC Group Plc is listed on Nasdaq Helsinki.