DGAP-Adhoc: SHW AG: Management Board proposes a dividend of EUR 0.04 per share for the fiscal year 2018

ANNOUNCEMENT ON INSIDER INFORMATION PURSUANT TO ARTICLE 17 OF REGULATION (EU) No 596/2014

Aalen, 29 January 2019. SHW AG increased Group sales by 5.1 per cent in the fiscal year 2018 to EUR 420.9 million. Reported EBITDA (defined as consolidated earnings before interest, tax, depreciation and amortisation) amounted to EUR 31.0 million and EBITDA prior to non-recurring effects to EUR 39.0 million. Group sales and EBITDA prior to non-recurring effects are therefore within the guidance. The reported preliminary and unaudited Group net profit amounts to EUR 3.0 million and earnings per share to EUR 0.47.

Operating free cash flow amounts to EUR -33.0 million, particularly on account of the record level of investments of EUR 48.7 million. In order to strengthen the internal financing capabilities of the Company, the Management Board has decided today to propose to the Supervisory Board a dividend of EUR 0.04 per share and therefore deviate from the dividend policy, which provided for a payout ratio of between 30 and 40 per cent of the reported Group's net profit.

After approval and adoption of the (consolidated) financial statements, and subject to the decision of the Supervisory Board, the corresponding appropriation of profit will be submitted to the annual general meeting on 7 May 2019 for resolution.

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